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By Sean A. Kelly

A debt-to-income ratio (DIR) is a ratio used by lenders to determine a consumer’s ability to repay a loan. Most lenders look for a DIR well below 50 percent, even lower if you are applying for a secured loan–like a mortgage or home equity loan. If you have a high DIR, there are ways to reduce this ratio so as to qualify for a debt consolidation loan. A debt consolidation loan is much like any other loan you would get. The interest rate and the terms of the loan are closely tied to your credit score and your credit report.

There are no down payments to make to a debt consolidation loan, so your interest rate is more closely tied to your situation that it could be with a different kind of loan. The purpose of visiting a debt consolidation professional is to determine what is the best debt consolidation loan for your situation, and what kind of program your debt consolidation agent and you may put together. There are basically two types of debt consolidation loans; the secured debt consolidation loan and the unsecured debt consolidation loan. Your debt consolidation organization can help walk you through the differences between the two and they can also analyze your situation with you to determine which debt consolidation loan is the best for you to purchase. The debt consolidation company will use factors such as your credit score, your debt ratio, and your credit history to determine which kind of loan best suits your situation. Once the loan type is determined, the next set of parameters to outline is things such as the interest rate and the term of the loan. Your debt consolidation professional will work with you and your monthly budget to put together a program that you can afford and will help you pay off that high interest debt once and for all. In the end, the goal is to get your high interest debt into a situation that is more affordable for you which will free up your cash flow and allow you to purchase the things you need for your every day life.

If you are like the thousands of other American families, the economic crisis has hit you hard as well. With unemployment so high, many families have felt the financial impact of being without a job, or at least losing pay. This can put a huge strain on situations that were manageable in the past. The deficit is generally eaten up by credit cards, and unsecured debt loads are skyrocketing. To get out of this vicious cycle, you have likely considered ways to consolidate credit card debt. What are the best ways to consolidate credit card debt? If you have several credit cards with outstanding debt, try to transfer the amounts to one card. Find out which one has the lowest interest rate and whether you can transfer the whole debt to it, or look for a new card with a low introductory rate that won’t expire before you can pay off the debt. Many credit card companies offer balance transfer specials, making it easier to consolidate your debt with them. Using a personal loan to consolidate your credit debt can help your credit rating, and lower your overall credit debt obligation. Secured loans and unsecured loans are two kinds of personal loans to consider. A secured loan is backed by your personal property known as collateral. Your bank will determine how much value your collateral needs to be to get the loan, and you must prove that your personal property is paid for before you can use it as collateral. An unsecured loan does not require any collateral, and is offered to people with good to excellent credit ratings. A home equity account is another option to use when consolidating credit. It is best to use a home equity loan rather than a home equity line of credit to consolidate debt because you can get a fixed rate on a home equity loan. The interest rate on a home equity line of credit is normally variable, and this may wind up costing you more than the individual credit accounts were costing you before consolidation.

Credit card debt consolidation can provide the financial breathing room you need while you are getting your financial act back together. One of your most viable and likely options is credit card debt consolidation. You can find free or very low cost credit card debt consolidation services at many companies, some of whom even have a dedicated staff that will work with you to explain to you how it works and how things happen. Understanding how credit card debt consolidation works and what it can do for you can save you a lot of time and money.

The interest rate charged by credit card debt consolidation company may not be the lowest in the world, but it is almost certainly better than what your credit card issuers were charging. It is a great relief for you when you pay a single interest rate on your debt consolidation loan instead of multiple different credit card interest rates. With a credit card debt consolidation loan, you have accomplished several positive things. First of all, your single monthly payment on the debt consolidation loan is going to be less, perhaps even far less, than the sum total of what you were paying on all your credit cards. This should hopefully give you the financial breathing room you need to get back on track. Secondly, it does not tarnish your credit history or your credit score like a bankruptcy would, or as credit card charge-offs would. As far as the credit card companies are concerned, you are making payments on time with the minimum payment due or more, and they are happily reporting you as current and on time to the credit bureaus.

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By Carrie Reeder

When urgent situations arise and money is tight, a payday cash advance loan may provide you with enough funds until your next payday. There are many advantages and disadvantages to applying for quick personal loans. If used responsibly, payday loans can be a lifesaver. As long as an applicant is in a financial position to repay the loan, high fees and additional interest are avoided.

What are Payday and Cash Advance Loans?

Cash advance loans are very different from loans obtained from credit unions, banks, etc. Cash advance companies offer personal loans during a financial crunch. However, the process is much quicker than other lending institutions, the loan term shorter, and the loan requirements are simpler.

Because cash advance companies offer loans to a variety of people with all types of credit, they must establish certain loan requirements. Nonetheless, their primary objective is to offer financial assistance, thus credit scores are never considered.

Payday Loan Company Loan Amounts

Each cash advance company has a different maximum payout. Most companies offer short term loans up to $500. On the other hand, several online cash advance companies approved loans with higher amounts. Be aware that the more money borrowed, the higher the loan fees. Loan companies charge a flat fee per $100 borrowed.

For the most part, you may get a loan up to $1500 with no credit check or collateral. Loan companies that offer funds up to $3000 may request a vehicle title or other form of collateral.

General Requirements for Cash Advance Approval

Payday loan companies do not care about credit scores, income, or occupation. They simply want applicants who are capable of repaying the loan. Thus, those applying for a cash advance loan must have verifiable employment. Typically, employer needs to be the same for 90 days.

All loan companies establish a minimum monthly salary, which ranges from $1000 to $1500. Because most cash advance companies deposit and withdraw funds, an active checking or savings account is necessary to receive funds.

The entire loan process is completed electronically. Therefore, the loan company will automatically deduct the loan, plus fees, on the due date. To avoid paying additional fees, the funds should be available for withdrawal within two weeks.

About the Author: GGo to abcloanguide.com/paydayloans.shtml for information on Low Interest Payday Loans online. ABC Loan Guide’s lenders are reputable and competitive in their rates.

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