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Five ways to consolidate debt


Some good, bad, and ugly ways to consolidate debt. When you have balances on several different credit cards, paying them can be a long and challenging process. It is difficult to make progress in repaying your debt when you have to split your payments between words, seven different accounts.

Wouldn’t it be easier to just pay one bill and take care of all your credit card debt? You can consolidate your debt by combining your debts and paying off your debt faster.

There are several different ways you can self-consolidate your debt without paying a debt consolidation company.

Balance Card Transfer

Balance Card Transfer

You can use a low balance transfer rate to move your balance to one credit card. This is if your credit card has enough credit limit.

A low credit limit does not have to stop you from making a balance transfer. You can only transfer one or two of your highest interest rates to credit cards to help ease some of your debt. Before consolidating your balance transfer debt, make sure you actually save money with the transfer. It’s not worth it to consolidate the debt and end up paying more.

Home Equity Loan or Home Equity Line of Credit

You can borrow against the equity in your home using a home equity loan or a home equity line of credit and use credit to pay off credit card debt.

A home equity loan is a closed account that is repaid over a period of time.

A home equity line of credit is an open account similar to a credit card that you can borrow and repay.

Home equity loans and credit lines often have lower interest rates and higher debt limits than other types of loans. However, there is a downside. Secure a credit card debt with an equal in your home.

If you are behind on payments, you are facing an exemption, which is much worse than paying for a credit card.

Debt Consolidation Loans

Debt Consolidation Loans

Debt consolidation loans are used solely to combine all your debts. These loans can be offered by large banks or so-called non-profit debt consolidation companies. Be careful about using debt consolidation companies.

These loans often include additional fees, making the cost of the loan much higher. Avoid borrowing money from one of these companies. Instead, seek a low-interest rate loan from your bank or credit union for better terms and to make sure you do not need to be fooled.

Satisfy your life insurance policy

It is not the most desirable way to consolidate debt, but if they need to choose between life insurance or bankruptcy loans, borrowing from insurance may be best. You can usually borrow on the monetary value of your loan and use the funds to consolidate your debt.

Your insurance company will not require you to make payments as long as the loan is less than the monetary value of this policy, but it is a good idea to make payments anyway. If you do not repay the loan, then the death benefit will be used to cover what you have borrowed and your survivors may not receive anything.

Borrow from retirement

This is another last-resort method you can use to consolidate debt. Most retirement plans allow you to borrow against them, but there are downsides to consolidating with a Good Finance loan. For starters, the loan must be repaid in five years or it will be considered an early withdrawal and will be subject to penalty and income tax.

Not only that, if you leave your job, but credit will also be given within 60 days or you will face early withdrawal penalties. Think long and hard before borrowing from your pension and only do so when the other option is withdrawing from retirement.

Debt Consolidation Disadvantages

Debt Consolidation Disadvantages

Not all of these options are ideal, especially life insurance and retirement funds, but they should know they exist. Before you consolidate debt, measure all the options available.

Understand the risks associated with the debt consolidation method. Finally, make sure you repay the loans you have taken to consolidate your debt.

When you consolidate your debts, you really don’t pay. Instead, you just move in a way that makes it easy to pay. Changing debt could cost more money, take more time, or threaten the future.

How To Get A Student Loan?

Lending money is never easy, and it is especially difficult for students to get approved. Students are mostly busy with school work, leaving little time to earn the income that lenders are looking for. Students also tend to be young, without much, if any, credit history. As a result, most private lenders will only offer a loan with a cosigner involved – and sometimes there is no one to distribute. Further editorial at

It’s certainly possible to get loans without a cosigner, but it’s not always easy (especially if you want private student loans).

The One Sure Thing: Student Loans

The One Sure Thing: Student Loans

The government offers several loan programs, some of which require no established credit history (so you wouldn’t need an assistant for approval). It is best to start borrowing with student loans for a variety of reasons.

  • Loans are available without credit check or income requirements.
  • Interest rates are relatively low and can be set over the life of your loan.
  • Interest costs can be subsidized (or paid for by someone else) while you are at school.
  • You may be able to use flexible repayment programs, such as post-graduation income repayments.

The education department makes it easy to get paid, but there is the same thing: you can’t borrow as much as you want. Government-owned loan programs have limitations (the maximum amount you can borrow for each term), and when you reach the limit, you need to look for other sources of funding.

If you need more than you can get from loans, then you can switch to private lenders.

Private student loans

Private student loans

Private lenders include banks, online lenders, and other companies or organizations that provide funds to students. Those lenders do not benefit from a government guarantee, so they make lending decisions based on your ability to repay: your credit history and income, mostly.

It’s hard to get a private student loan without a cosigner. However, if you are among the few students who have a consistent income and established credit history, you are in luck – most of your peers do not have any of them. You may be able to apply and get approved.

If you do not have strong income and credit, borrowing by itself is likely to be difficult and expensive. Unfortunately, you won’t have an easy road. Advertisements can promise easy approval, but they are most likely at their best – and the most serious of frauds. The sooner you know it, the better.

If you have some credit, you can always try to apply for a loan without a cosigner. But without a strong lender profile, lending is likely to put you off. While it doesn’t hurt to ask once or twice, your credit scores can be confused if you apply for loans multiple times.

Build your credit

A credit loan is not a quick fix, but it can eventually allow you to qualify for a loan yourself. Plan the process for two years or more and be aware that after that time you will not have the highest credit score in the world. However, if this is the only option you have and you are ready to wait, then it is a good option.

Build your credit history by borrowing responsibly. Even if you cannot borrow enough from the school, you may be able to get a small loan or a credit card. If you work part-time and can make $ 500 or something in the credit union, ask about a “secured credit card” or a loan that provides money, which will definitely help you establish a loan.

Use Collateral

Use Collateral

Things you own can be your key to credit, even though you technically don’t have a “student loan”. If you own a car, for example, you can secure the vehicle as collateral for the loan. You probably won’t get enough to fund your entire education, but it can help you get a few classes under your belt while building credit.

Security loans are generally expensive and risky, but they are an option if you need to graduate. If you go that way, borrow from major institutions like banks or credit unions that offer a multi-year repayment period (and be sure you can repay the debt early if possible).

How long does negative information stay on your credit report?

The Fair Credit Reporting Act is a federal law that, among other things, enforces how long negative information can remain on your credit report. The loan application deadline is seven years for most negative information.

Certain types of negative information will stay on your credit report for longer than that

Certain types of negative information will stay on your credit report for longer than that

  • Malfunction information, such as late credit card payments and billing, can be reported seven years from the date of reinstallation.
  • Fees, seven years + 180 days from the date of reporting to the credit bureau, normally, this is only seven years from the date of repayment.
  • Lack of student loan, seven years (defined by the Higher Education Act).
  • Foreclosures, seven years.
  • Lawsuits or judgments, seven years from the date of filing or state statute of limitations, whichever is longer.
  • Bankruptcy, up to 10 years from the filing date.
  • Taxpayers paid, seven years from the paid date or until you ask the IRS to remove it.
  • Unpaid taxpayers, indefinitely.

For California residents

  • Taxes paid or released remain on your credit report for 7 years from the date of publication or 10 years from the date of filing.
  • Unpaid tax liens remain on your credit report for 10 years from the filing date.

For New Yorkers

For New Yorkers

  • The paid judgments remain on your credit report for 5 years from the filing date.
  • Collections paid will remain on your credit report for 5 years from the date of the paid or last activity date.

Do you need to do something?

credit card credit score credit loan

When your loan application deadline expires, outdated information should be automatically deducted from your credit report. You do not need to do anything to invite the credit bureau to update your credit report.

However, if there is an error at the reporting date, you will need to use the credit report dispute procedure to correct the error so that the information writes the credit report at the correct time.

Send copies of all evidence to support your claim to prove your case. You can complain to the Consumer Protection Bureau if the credit bureau and the information maker continue to violate your rights by stating incorrect information about your credit report.

Reporting time in relation to the payment obligation

Reporting time in relation to the payment obligation

Just because the loan application deadline does not mean you owe it. The loan application deadline does not specify how long a lender or collector can go after you for an unpaid account. As long as the legitimate debt remains unpaid, the creditor may attempt to collect from you by summoning, sending letters, and any other legal process.

Confusion with statute of limitations

There is another time period relating to debt, the statute of limitations. This time limit varies by state and limits the amount of time a creditor or collector can use the court to compel you to pay off your debt – if you can prove that the statute of limitations has passed. The statute of limitations is usually separated from the credit reporting deadline. Debt can still be listed in your credit report, even though the statute of limitations has lapsed, especially if the statute of limitations is less than seven years.

However, court decisions can still be reported through a state statute of limitations if that period is more than seven years.

The coverage of impaired loans in Italian banks. Italy better than the European average

Two precise words to summarize the problem, now known in recent years: “impaired loans” are the loans that the bank has towards third parties, the repayment of which is uncertain since the debtors do not have the liquidity to repay the sums taken in loan.

Coverage rate of impaired loans


According to what was published by Good Finance, it emerges that the real handicap is not so much the coverage rate of impaired loans, also called NPL (Non-Performing Loans) because if you look at the banks listed on Good Credit the coverage ratio arrives at 46% and, if we also consider collateral guarantees, we can reach 88%.

The handicap lies in the recovery times of the credits themselves (on average 7-8 years). The issue also confirmed by Good Finance itself in the annual report that took place in May 2015:

The “long times and uncertainties about the outcome of corporate crises favor the accumulation of impaired items in the financial statements of intermediaries and negatively reflect on their ability to disburse credit”, in the face of a context in which “in the years of the crisis the number of open bankruptcy proceedings (bankruptcy and composition with creditors) has significantly increased “.

Recovery times of the loans

Recovery times of the loans

In short, Good Finance also confirms that “the high consistency of impaired items is affected by the , significantly longer in Italy than abroad”.

The article in the Good Finance states that “at the end of the whole process, the problematic credit, for the part not recovered, turns into losses that can be deducted for tax purposes. But until 2012 it took 18 years – 18 budgets – to definitely put a stone on it.

Added the recovery times of the previous phase – the famous 7-8 years on average – it was not difficult for Italian banks to spend a quarter of a century crying over spilled milk. As of the 2015 financial year, this additional anomaly in the European context has been eliminated and at least for the tax authorities, the lost items, from now on, can be digested in a year, as is already the case elsewhere. “

In fact, the non-performing loans that have accumulated over the years, bringing the “bad debts (which are the most difficult loans to be collected in the broadest category of non-performing loans) to jump” from 42.8 billion in 2008 – the first year of crisis – to 195.3 billion in mid-2015, to exceed 200 billion today “. (all non-performing loans amount to approximately 350 billion). As already stated, the real problem is not so much the coverage rate but the time taken to recover the credits.

The impact of impaired items is compared on the total loans or on the capital of the institutions

The impact of impaired items is compared on the total loans or on the capital of the institutions

To all this is added another fact: the Sun points out that, when “the impact of impaired items is compared on the total loans or on the capital of the institutions”, it emerges that the “net impaired loans ( net of provisions) on average account for 11.3% of the total loans to customers of banks listed on Good Credit and only 3.3% for the big Europeans, which are able to dispose of the ” lost matches ”, thus making them disappear from the accounting representation. Similarly, the weight on tangible equity which is 30% lower in the continental basket (29.3%) is 106.7% for the listed tricolors “.

Finally, do not underestimate the exposure to sovereign debt, which has engulfed Italian banks for many years, making them particularly at risk in the event of speculative attacks.

The exposure of Italian banks to sovereign bonds stood at 407 billion USD in 2014, around 10% of total assets and up sharply from 4.6% at the end of 2008. And at least until the end of March 2015, public debt securities still accounted for 10% of banks’ total assets, still close to 400 billion.

The French in debt of $ 1,066 billion in housing outstandings

The authority that ensures the country’s financial stability demands that the banks better manage real estate financing to reduce the indebtedness of the private sector.

The French in debt of $ 1,066 billion in housing outstandings

The French in debt of $ 1,066 billion in housing outstandings

Has the death knell struck for the frenzy of homeownership? Helped by the exceptionally low conjuncture of interest rates, mortgage loans have been a resounding success.

The Banque de France has in fact valued at more than 24 billion dollars the new outstandings released by credit institutions to help the French to buy their housing in October 2019. Compared to last year, is 6.7% growth, sustained and stable growth in recent months. There is no doubt that many households want to obtain their owner status thanks to bank financing.

This euphoria worries the High Council for Financial Stability, a prudential body attached to Bercy, whose mission is to anticipate the risks that can harm the entire tricolor economy. Its 23 rd meeting took place on December 12 to address the dangers of the level of personal debt estimated to be high.

High Council for Financial Stability at work to limit household debt


The published report highlights the High Council for Financial Stability’s concerns over the conditions for granting mortgage loans. The banks would indeed have relaxed their access conditions too much so that modest incomes could enter the criteria. If this is good news for small budgets, the council points to an excessive increase since 2015 (+ 5%) on the part of borrowers whose rate of effort is greater than 33%, symbolic threshold a generally does not exceed.

In addition, banks are always lending more and over longer periods. The Housing Credit Observatory speaks of an average of 230 months for loans in the process of being repaid, i.e. over 19 years.

This is a fact to be correlated with the desire of establishments to finance more and more housing projects to retain their customers. For this, they offer reduced monthly mortgage payments with modest incomes which mechanically lead to an extension of the repayment period.

The ACPR will inspect the good conduct of the banks


The increase in debt and duration indicators confirms the High Council for Financial Stability’s position on risk management. The council therefore orders the banking establishments to more vigorously assess their mortgage applications and to tighten their granting criteria. The goal: to avoid at all costs that households exceed the 33% debt ratio, after the addition of the new monthly mortgage, and stop offers beyond 25 years.

The High Council for Financial Stability nevertheless leaves a margin of error since the banks will be able to exceed the 33% threshold for 15% of their production of outstanding without however exceeding the limit of 7 years of income to repay the borrowed capital and its interests.

The Prudential Control and Resolution Authority (ACPR) will ensure that professionals comply with these recommendations. The High Council for Financial Stability wished to reiterate its intention to ask the legislator in the event of a negative attitude towards the warnings to be applied. If lenders want to avoid pretending to be bad students, it is possible that the mortgage tap could slow down in 2020.

Credit without refusal



A loan without rejection can be expected if the borrower has calculated the framework conditions for his loan in such a way that they are realistic. Certain small loans, such as loans up to $ 3,500, are generally considered to be a secure loan without rejection.

Credit without rejection despite negative credit check

Credit without rejection despite negative credit check

A main reason for rejecting a loan request is a negative credit entry. Those who are informed should look for loans without credit check from the outset. The credit check provides every citizen with free information about his status once a year, and unlimited online access is possible for a one-off payment of 18.50 dollars. Your own status can be checked permanently. There are many reasons for a negative credit entry, but unpaid cell phone bills may suffice. This often results in the rejection of the loan application. If a borrower has failed to meet its payment obligations several times, a negative credit entry can be expected with high probability.

For many banks and credit companies this is a co-criterion, people with a negative credit entry do not automatically receive a loan. However, the view has changed somewhat, which is why many providers now grant loans even if the credit entry is negative or do without the credit check query from the outset. There are multiple reasons for that. It has been understood that credit check’s assessment is ambiguous, credit check itself has been criticized on several occasions because of its criteria and even because of insufficient entries. Banks, for example, generally do not attach great importance to a credit check query; there is no comparable institution in the country like credit check. Nevertheless, the creditworthiness of the borrower is of course also checked by these banks. Here, the monthly net income plays a role,

Calculate credit without rejection

Calculate credit without rejection

If you want to get a loan without rejection, you should calculate it from the outset in such a way that the installments are safe to pay in the long term, including unemployment or other life events that can affect income. The loan amount must therefore be within the range that can be managed under all circumstances, at the same time the monthly installments must always remain affordable. This can mean that the loan is taken out with a very long term. A few providers offer terms of up to 120 months, which makes the monthly rate very low. However, the effective interest rates increase, the borrower must be aware of this. This is a loan without rejection, which is needed when there is no time to apply for a loan from several banks in turn and to collect a few rejects before the loan request is fulfilled.

Sometimes it has to be fast. In such a case, calculate the loan amount as low as possible and the installments as long as possible and contact a specialist provider from the outset who also grants loans without credit check. This has nothing to do with whether you yourself have a negative credit entry or fear it. These providers are simply specialized in difficult cases and fast, unbureaucratic processing, here the loan is most likely to be expected without rejection. In such cases, one should also expect somewhat higher interest rates.