Government debt consolidation-they do exist
Not only are there debt consolidation loans available through private sector banks and credit unions, there are also government debt consolidation loans available too. These loans are funded by various government organizations and are geared to help people get some financial relief by paying off their debt more quickly.
A government debt consolidation loan operates under the very same principal as any other type of consolidation loan: it allows someone who has multiple credit cards or other debt to pay off all the smaller debts with the loan. That leaves them only having to deal with making one payment every month to repay the consolidation loan.
This is almost always cheaper than having to pay even the minimum payments on several smaller loans. That means they can get out of debt faster and possibly even have a little money left over in their pocket every month.
In the long run, the one payment is often a lot less than the total amount of money you were spending on multiple smaller payments every month. Since your payment is the same amount every month, it is much easier to make and stick to a budget. That can help keep you from just falling back into a bad pattern of spending and poor money management habits.
These loans are particularly helpful to students who have racked up a lot of credit card or student loan debt over the years as they were pursuing a higher education.
Having just one, relatively small loan payment every month will make it much easier to deal with all the debt and pay it off in a shorter time frame. Paying your loan off quicker will save you a lot of money in interest and allow you to be debt free, which is always great, much more quickly.
These types of consolidation loans can be a great alternative for many people but it is very important that you carefully research the place that is offering the loan. There are some companies that claim to provide government loans but in reality they really aren't associated with any government programs at all.
Many of these companies will promise to "hook you up" with a government loan if you pay a "small processing fee". Also, some of these companies will also promise to help you get government grant money to pay off your credit card or student loan debt. These promises are phony since government grant money doesn't go to pay off debt, it goes to research facilities or small businesses to help them get started.
Be very careful of who you trust when you are searching for a debt consolidation loan. It's a sad thing but there are a lot of businesses that are started on the idea of ripping off unwary customers.
Government debt consolidation
may be a viable option for you if you want to get rid of your student loan and credit card debt once and for all. Just be careful who you deal with.
TAGS: government debt consolidation they do exist, debt consolidation, finance advice
Article Source: Messaggiamo.Com
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