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Student Loan Debt Consolidation - The Bills.com Blog
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Student Loan Debt Consolidation
Friday, Apr 6, 2007
Question: I need to pay off some defaulted student loans. Can a student loan debt consolidation loan help me with this?
Answer: There are many forms of debt relief and student loan debt consolidation, including: i) debt consolidation loans, ii) credit counseling, iii) debt negotiation, and iv) bankruptcy.In your case, the only solution that will not impair your credit profile is a debt consolidation loan.
Debt consolidation can benefit you in many ways: i) monthly cash flow, ii) total savings, iii) interest deductibility, and iv) your credit rating.
However, all forms of debt consolidation are not the same. You need to consider your specific situation, including if you own or rent your home, your monthly debt to income ratio, and your credit rating. A program like a debt consolidation loan may lower your monthly payment,
get you a lower rate than most credit cards, and the interest is tax deductible.
Alternatively, a program like negotiated debt settlement may lower your monthly payment, get you debt free fast, save half of what you owe, but it could negatively impact your credit rating. Also, typically credit counseling or debt settlement do not work well with government backed student loans.
The
Alternatively, a program like negotiated debt settlement may lower your monthly payment, get you debt free fast, save half of what you owe, but it could negatively impact your credit rating. Also, typically credit counseling or debt settlement do not work well with government backed student loans.
The
federally chartered program for student loan consolidation does not apply if you have defaulted on past payments... so if you own your home and can take out a debt consolidation loan, that may be your best course.
Bills.com makes it easy for you to apply, at Mortgage Refinance
These are a few of the considerations. If you would like more information, please visit our debt relief boot-camp .
Bills.com makes it easy for you to apply, at Mortgage Refinance
These are a few of the considerations. If you would like more information, please visit our debt relief boot-camp .
Also, make sure to get a free financial health check-up with Bills IQ!
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