KNS Financial

Personal Finance From a Biblical Perspective

Why Debt Consolidation May Help You

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The following is a guest post about debt consolidation and home loans.

Many people try to tackle their debt once the idea of purchasing a home enters their mind. They then realize how a few bad financial decisions in the past, can have such a huge impact on their ability to get a mortgage.

A good home loan comparison along with a sensible debt repayment plan may free you from your current financial problems. Nothing is more stressful than being in debt and knowing that you have the pressure of paying for something which puts you at risk because of your lack of creditworthiness!

Before you even consider making another big purchase, you need to take care of your debt problems.

The question is where do you begin? It all starts by finding out and asking yourself: how much can I borrow? You must follow your debt reduction plan without exceptions.

Use Debt Consolidation With Caution

The additional benefit that you get by consolidating debt and being firm with your financial decisions is that you can live with less stress. The most important criteria of any debt consolidation plan is that the refinanced loan repayments will be lower than the existing loan.

Remember that this rule applies to all levels of debt. You have to make sure that the terms of your consolidation put you in a better place than you are now. Sometimes the fees that you pay are more than the money you stand to save by consolidating your debt.

Sometimes it may be better to simply go to your creditors and negotiate better terms. It can save you time and money, and also give you more control over your financial situation.

Debt Consolidation – Only After Your Spending Is Under Control

When you decide to get out of debt by using a consolidation loan, you have to first discipline yourself to control your spending.

It doesn’t make sense to free up all of this credit, if you are just going to go on future spending sprees. First, get your spending under control, and then try to attack your current debt. If not, you will end up with twice as much debt, and less resources with which to gain financial freedom.

You need to take care of your assets. In short, experts recommend people begin by consolidating small loans including car and or credit card loans.

photo by renjith krishnan

How To Reduce Home Energy Costs

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[The following is a guest post on behalf of Money Supermarket]

As temperatures drop, it is time to get your home ready for the winter. Some locations see lots of snow and below freezing temperatures. For these people, preparing for the winter takes some time, especially when the goal is to try and reduce home energy costs. For those that live with more moderate temperatures, much less preparation is required.

If not cared for properly, homes may need costly repairs that could mean applying for unsecured loans or even a consolidation loan.

How To Reduce Home Energy Costs

Reduce Home Energy Costs Inside the Home

There are several parts of your home that work together to make sure you stay warm and toasty despite the chilly temperatures outside. Your heating system is one of the most important parts of this system. Consider calling in for a maintenance appointment before it gets too cold outside.

A technician can provide you with an inspection checklist and even take care of minor repairs that you need. Remember that a little bit of money upfront could save you the search for unsecured loans if the system needs to be replaced.

Check your windows and doors for any type of leaks. You want your home to be energy efficient; in fact, this is the key to proper home energy management. When warm air is getting out and cool air is sneaking in, it takes more energy to heat your home. This means higher utility bills along with an inconsistent environment in your home.

Outside the Home

If you have any water lines or pipes outside, make sure that when it gets really cold, that you have them completely wrapped in order to prevent freezing. If a pipe does burst, you could be looking at an enormous water bill, the cost of fixing the pipe and the damage to your backyard. Unsecured loans could be required when you owe this much money in such a short amount of time.

Plants are often ruined during the winter. If the freeze hits and they aren’t protected, it could be the end. In most cases you can wrap them up with a blanket or sheet to prevent freezing. Having several sheets readily available can make it easy to cover plants if a last minute weather warning comes through.

As you look around the yard and the shed or even inside the garage, you may have tools and items that are sensitive to cooler temperatures. While you don’t expect the water, snow, or sleet to make it into the shed or garage if a storm hits, this is a possibility.

Make sure that everything you need that has the potential for damage is brought inside. With warmer weather, you may have just left things outside without worry, but as winter approaches, you don’t want to risk it.

Avoid unsecured loans and make it a point to prepare your home this winter. With a small investment of time (and maybe even money) you can avoid some of the common problems and issues that people face when the temperature drops.

Most of these tips can be applied to business energy management as well. Once these basic things are handled and you are prepared, you can sit back and enjoy the change of weather and the holiday season.

photo by Pixomar

Why A Consolidation Loan May Be Worth Considering

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I know that many of you may think I’ve gone crazy with the title of this article – especially since I am trying to pay off debt myself – but I can assure you that I have not.

With interests rates being as low as they are right now, this may be a perfect opportunity to take out a loan in order to refinance debt or start up a business.

Don’t get me wrong, I still despise being in debt bondage, and I would still advise all of my clients, family, and friends to avoid debt whenever possible; but I also understand that taking out a loan isn’t always the worst option.

Here are a couple of situations for which getting consolidation loans might be the answer.

High Interest Credit Card Debt

Some people get into credit card debt because they decided to live above their means. For others, it may have been due to a few acts of desperation. Some may have even tried to take advantage of credit card benefits, and for some reason, were not able to pay off their debt.

No matter what the reason, if you are stuck with high-interest credit cards, it’s time to take action. First, call your bank(s) and try to negotiate a lower rate. If that doesn’t work, see if you have a card with a zero balance and a balance transfer offer. If your savings are higher than the transfer fee, do it!

If none of these options work, it may be best to take out a loan – be sure to take advantage of a personal loans comparison first from sites like http://www.comparethemarket.com/loans/ – and consolidate your credit card debt.

Student Loans

There are a growing number of people who are financing their higher education with the help of student loans. Unfortunately, many of those former students are then put into a difficult financial situation because of their high monthly student loan repayments.

Depending on whether you took out subsidized versus unsubsidized Stafford Loans (or some other instrument), you may end up owing a lot more than you realize once you’re out of the grace period.

Sometimes, the only option in these cases is to secure another loan, which will help you to lower your interest rate and/or extend the amount of time that you are given to pay back the loan – lowering your payments in the process.

Of course, your goal should always be to pay back any debt as quickly as possible, so don’t use your lower payments and a license to go wild with your spending!

Consolidation Loans For Your Car Note

Most people only think about refinancing their mortgage when overall interest rates in the economy drop. However, you can still save yourself thousands of dollars if you can get a new loan for your vehicle.

Don’t forget to compare any fees that you might have to pay with the amount of money you stand to save by refinancing.

The same exact things can be said about refinancing your mortgage – besides, people write about that so often that it gets boring! 😉

photo by Omar Omar

Reader Questions

  1. Have you ever had to take out consolidation loans for one or more of the reasons listed above?
  2. Do you think it’s a bad idea to try to fix a debt problem with more debt?

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