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Debt Consolidation Miami: The Complete Guide

Debt Consolidation Miami: The Complete Guide

Many Americans are struggling to meet their financial obligations. In tough economic times with a high unemployment rate, people turn to using their credit cards to make ends meet. As the amount of debt begins to escalate, it becomes more difficult to even meet the monthly minimum payments required. Debt consolidation allows consumers to centralize their debts into one loan with the primary goal of lowering the interest rate. With only one monthly payment to make, handling the bills becomes much easier.

Choosing the Right Type of Loan

When seeking a debt consolidation loan, consider getting a secured home equity loan. Lenders usually offer these with a very low interest rate. Homeowners can use their property as secured collateral making it much easier to qualify for a high loan amount. Another option is to obtain a home equity line of credit that acts as a second mortgage. When shopping for the best deal, take the following factors into consideration:

  • Interest rate offered
  • Terms of repayment
  • Application, evaluation and closing fees
  • Administrative costs
  • Insurance costs
  • Consultation fees

The upfront costs to obtain the loan will vary greatly among lenders because it is a very competitive market. Payments that are stretched out over a longer period of time will allow the consumer to free up some cash each month. This can be used to possibly make home improvements, thereby increasing the overall value of the property.

Is Debt Consolidation Your Best Option?

Debt consolidation might be the best choice you if any of the following is applicable to your situation:

  • You are currently using your credit cards to pay of other large bills or credit cards
  • You have taken out several payday loans
  • You are obtaining new credit cards just to pay the basic necessities of life.

Expiration of Debts in Florida

Consumers who have debts that are several years old may not be aware that eventually they expire. The law limits the amount of time a debt collector can take action against an individual. This is called the statute of limitations. In the State of Florida, the following applies:

  • Oral Agreements—Four years
  • Written Contracts—Five years
  • Promissory Notes—Five years
  • Open Accounts (usually credit cards)—Four years

Creditors and collections agencies can only come after a consumer if the debt has not yet expired.

Beware of Scam Artists

There are many scams where companies are all too eager to take your money while making outrageous promises. You should conduct some research before choosing the company. Here are some things to look for:

  • Find out if the company is accredited by the Better Business Bureau.
  • Ask friends and family members if they have an opinion or have done business with the company.
  • Check to see if there are other customer complaints filed against the company.

Reputable companies will make sure that creditors are prevented from harassing you during the process. One of the major advantages of debt consolidation is being able to avoid filing for bankruptcy.

Photo courtesy of joiseyshowaa.

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