Student Debt Consolidation Loan – The Advantages And Disadvantages

Higher education is very expensive and not everyone can afford it. Everything from accommodation to tuition fees and books has to be paid for. To pursue our dreams and go to the university we always wanted to, student loans come in handy. Their rate of interest is lower than the normal rate of interest and the time for repayment is also significantly higher. We sometime take more than one student loan to help us with our finances during college. Paying the interest for different loans every month can be a daunting task and student debt consolidation loans come in handy.

A student debt consolidation loan is one in which all the smaller student loans are combined into one big loan and the student has to pay off just this every month. There is only one repayment period and one due date to make the payment. The loan’s interest is also significantly lower and you can save precious dollars every month. There are two basic types of student debt consolidation loans and they are federal student consolidation loans and private student consolidation loans.

Advantages of student debt consolidation loans:

1. The rate of interest on these loans is fixed and it has a significantly lower rate of interest than the other loans combined.

2. There is just one loan to pay off so remembering the due dates will not be difficult.

3. You can have an extended time of repayment of the loan and this can go up to 30 years.

4. As the time frame to pay off the loan increases the amount that needs to be paid off every month also reduces significantly.

5. You don’t have to pay any extra fee to consolidate these student loans.

6. The application process for this loan is also much simpler and there are no penalties for paying back early as well.

Disadvantages of the student debt consolidation loans:

1. Extended payment periods may make it seem that very little money is flowing out of your pocket but in the long run you will end up paying much more than you borrowed.

2. It is extremely important to be very careful about the amount of interest you have to pay on a consolidated loan. It can happen that the rate of interest is higher in the consolidated loan than the other individual loans. In this case taking a consolidated loan is more of a disadvantage.

3. When taking a consolidation loan, you should also consider the remaining tenure on your various loans. This is especially important when you are taking a loan for the purpose of consolidating your payments into one (rather than due to financial problems in paying back the loan). If most of your loans are nearing the tenure completion, you would not gain from consolidating such loans.

4. Consolidating the loans within the grace period will require you to pay it off immediately.

Student loans have helped millions of students pursue their dreams and become what they are today. Student debt consolidation loans help them ease the financial burden to a great extent. The pros and cons must be evaluated carefully before choosing to consolidate the student loans.

All That You Would Like to Know About Payday Loans

I am out of cash! I don’t have any money! I am having bad credit. I need financial aid badly.

Have you ever said so in middle of a month? Have you ever faced financial crisis? I don’t think any of my readers can answer “NO” bluntly to this question. Everyone faces financial crisis once in a lifetime and cannot tally his spending with his earnings. There are many uncertain expenses and events may occur. Your son broke his teeth while playing Baseball as he fell and now you have his dental expense which in no chance was planned by you. Your wife suddenly got some medical emergency and naturally that expense was not at all planned by you. Your car got damaged and needs repairs, you needed to buy any household appliances urgently as your oven, refrigerator, heater, etc. got damaged and you had to replace it or you became a victim of robbery in the mid journey. What will be your answer to such expenses? Yes the answer would be PAYDAY LOANS. Yes i.e. the loan given before your Payday (Salary day) to fulfill the expenses incurred and not manageable in the current month.

Payday loan is like a “Boon” for fixed income people. The procedure for obtaining such a loan is so simple, just like borrowing money from a friend. Cash Online Advance and Payday loans are one and the same.

The things required for borrowing a payday finance online is as follows:

1. Identity Proof
2. A bank account
3. Citizen of the United States over 18 years of age
4. Current employment

Except the above mentioned things nothing else is required not even credit rating. The loans are also called credit-check free loan. Thus, a person with bad credit can also apply as credit check is not mandatory for getting a payday financing.

The most important advantage of payday loan is that it is available with no fax whereby, there is no documentation or faxing and other tedious paperwork required to get a payday loan.

Types of Payday Loans:

* Direct Deposit Payday Loan.
* No Credit Check Payday Loan.
* Faxless or No Doc Payday Loan (No Documentation required).
* Bad Credit Payday Loans.

The payday advance is available ranging from $80 up to $3000 within the time limit of 1 hour to 24 hours, except few difficult cases. The availability and approval of the loans depends on the lender and there are no specified rules to be followed for its approval. Money is available in minutes without any hassles, but the biggest disadvantage of such loans is that the interest is charged at a very high rate.

The repayment of this loan can be done within 90 days of its procurement. There are different criteria for different financial institutions providing payday loans. You would be paying either monthly or weekly payments towards your cash advance.

The Do’s for borrowers:

* Research for a good payday lender.
* Check the terms and condition with interest rate before signing for the loan.
* Use payday loans to pay credit card bills and maintain the credit in that aspect.
* Pay all the dues previously taken to avoid accepting high interest rate.

The Don’ts for the borrowers:

* Don’t make this kind of loan borrowing a habit it will be an addictive habit which will lead you to bankruptcy. Learn to manage the expenses from your earnings without taking any loans.
* Try to repay the loans as fast as possible to increase your credit rating and save paying towards interest rate.
* Loan is available but repayment is equally difficult. Don’t take more than 1 loan at a time if possible try to keep the loan amount low.

Payday loan is a boon but only if you can pay on time. Thus, the concluding statement would be “Take loans wherever required but be ready and willing to pay it back. Take loans and advances wisely – Payday loan is the boon with the same condition.