Monday, September 23, 2013

Do You Need Financial Freedom?

By Wen Rue


There is something about people that drive them to constantly find the best ways of doing things, the best clothes, the best cars, the best food, and so on. It's in our nature to want the best of what is available. So it makes sense that when people are hitting a hard time financially that they would want the best financial advisor that they can get. When someone gets to the point that the bills are adding up and there is no end in sight, they want to know the best way to resolve the issue. A good way to do so is to get a debt consolidation loan. Unlike bankruptcy, debt consolidation isn't quite as taboo and doesn't have the same social stigma attached to it.

Filing for bankruptcy can really clear up a credit report, but it will start off pretty bad. Bankruptcy will show up on your credit report, and remain there for several years. Banks and other lending institutions tend to deny loans to individuals that have this ding on their report. This includes car loans, mortgages, or any other type of loan. You would clear your debt, essentially wiping your slate clean, and allowing you to rebuild as if you had a fresh financial start.

When it comes to choosing a financial institution to work with, people always want to choose the best. The problem is that there isn't a best, as it's a matter of opinion. There are many institutions that will work with you, but what you need and what the companies offer will vary widely. The best bet is to find a financial institution that can provide the services you need, and work with you in a manner that you are comfortable with. However, there are a few things that wouldn't hurt a potential borrower to know or consider.

On the bright side, getting a debt consolidation loan can lead to immediate financial freedom. Using the money to immediately pay back all of the prior creditors, a small ding will show up on a credit report, but is offset by no longer having the same level of debt. The small credit ding is easily remedied by a few months of good behavior on the new line of credit. If the individual filing is already in the middle of settlements, the credit ding could last for about a year. Either way, only taking between a few months and around a year, debt consolidation loans are the quicker, and less drastic option.

If you want your slate wiped clean, you should consider a consolidation loan. They not only simplify the process of paying back your debt, they also show potential future creditors that you care about your financial situation. It won't take long before they are willing to loan money for new cars, boats, and even houses.




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