Posted by: admin in Consolidation,Debt,General,Reviews,Services on October 12th, 2014

When you’ve decided to use debt consolidation as the solution to your debt management needs, you’ve taken a big step towards aiding your debt problem. Debt consolidation allows you to group your current debts into one convenient loan, allowing you to pay a lower monthly payment than you are now at a lower interest rate. While this can be a great way to get debt under control, did you know that there are traps associated with debt consolidation loans? Many people don’t realize that the loan itself is only helping a symptom of a greater issue. Going to the source of the problem is the only way to truly get out of debt. While debt consolidation reviews is a great remedy, here are the traps to beware of that you may fall into if you take out a debt consolidation loan.

The Truth about Debt Consolidation
While debt consolidation feels like the sigh of relief you’ve been looking for, did you know that the lower monthly payments will mean your debt takes longer to pay off? Many don’t realize that these debt consolidation loans typically come with high fees as well.

While they promise to offer a lower interest rate than your current debts charge you, the debt takes longer to pay which means you’ll be paying more interest payments than you would have without the consolidation loan. It would be like having a 10-year car loan instead of a 5-year car loan. While you will pay less each month, which is beneficial to some, you’ve now added five extra years of payments and interest.

The Mistake of Repeating the Pattern
Debt consolidation can be the cure to your debt woes that you were looking for. Unfortunately, when you simply transfer your many small debts into one large debt, you may believe that the freed up credit is now your opportunity to use it again. You may be tempted to start charging those credit cards again now that the card shows a $0 balance. 70% of people who have used debt consolidation loans have ended up with as much, if not more, debt just a few years later. While these loans are supposed to help you get out of debt, many use them as a cure-all and neglect to change their own spending behaviors.

Using Debt Consolidation as a “Band-Aid”
One way to understand this concept would be to compare your debt consolidation to weight loss. The example would be if you bought a diet pill to lose unwanted weight. If you lose the weight and never change your unhealthy eating habits, you will put the weight right back on. One must adjust their mindset and behaviors while simultaneously working on repairing the current damage. If you become debt free but don’t live within your means or have a shopping addiction, you will most likely end up right back where you started once you’ve paid off your debt consolidation loan.

Losing Motivation
Since your mindset can highly affect your ability to correct your financial situation, it’s important to also note a difference in drive and motivation when you use these types of loans.

If you decided to get a consolidation loan or balance transfer for your credit card debt, then you’ll have all the debt under one loan and you’ll pay the minimum each month. If you hadn’t consolidated the credit card debt and just started paying off the cards on your own from the smallest balance to the largest balance, you might find that the motivation is higher for paying off the cards as quickly as possible when you are almost at that $0 balance on each card. Each time a card is paid in full, you would feel like you can actually see the light at the end of the debt-free tunnel and your motivation would get stronger as time goes on. Paying your monthly consolidation loan for the total of all credit card debts will not likely energize your sense of determination to pay it off as soon as possible.

Using Collateral
Many consolidation loans require collateral. When you put your house or car on the line, not keeping up your end of the bargain can leave you with a repossessed car or foreclosed home. It may seem like a good idea to take the loan by putting your home or car on the line, but you are risking your most important assets if you can’t make your payments.

Expensive Consolidation Services
People that decide debt consolidation is the route for them usually feel best speaking to a professional. Since debt relief has become such a profitable business, many debt consolidation services are going to be designed to charge you high fees in order to help you. What many people don’t realize is that the services they are providing are typically things you can do on your own. The fees they may charge you include monthly fees, up-front fees, and/or interest. You’ll need to determine if these additional costs are going to be worth it in the long run.

While debt consolidation has its pros and cons, be sure to avoid the traps associated with these types of loans and you can successfully pay off your debts with the right approach.

Debt Consolidation Service

Posted by: admin in Credit Cards,Debt,Economy on June 9th, 2012


We have heard numerous stories of people drowning into a sea of debt after using (or abusing) their plastic money, or credit cards which make many people think that credit cards are bad and will just just bring about financial doom. On the other hand, there are also many entrepreneurs who successfully use their credit cards to bank roll their businesses. By observing the right practices, you too can make your credit card work for your own business. Here are some tips that you can follow:

Pay the total amount due on or before the due date to stay in good standing. If you pay an amount that is less than the total amount due, you become a borrower and would be charged an interest of 2.5 to 3.75% a month, depending on the credit card issuer. If you pay after the due date, you will have to pay a late payment fee.

Take advantage of the cash advance facility. If you have several credit cards, compare the rates and terms so you could choose the most advantageous for you. Remember that you have to have the cash to pay your bill come due date.

Ask for a waiver of fees if you are a good payer or a long-time card-holder. Some banks may consider waiving your annual fees on your account if you are in good standing.

Use your credit card to monitor your cash flow and operational expenses such as utilities, office supplies, gasoline, etc. This can serve as a tool to analyze your business’ expenses and cash flow requirements.



Posted by: admin in Credit Services,Debt on December 16th, 2011

As the new year is fast approaching, countless resolutions flood one’s mind: hit the gym, go on a strict diet, work harder to get promotion, quit smoking, or save religiously to replenish cash on your savings account. The sense of accomplishing something by planning a better year ahead is what most people are looking for especially when it comes to improving one’s financial standing.

If you are one of the many people who is struggling to get your finances on track and have even stumbled upon debt, now is the best to seek professional help through mcn credit services so you could start dealing with your finances accordingly. This is a smart way for you to have a better picture of  your options in setting your goals to pay off your debts, restore bad credit, and make sure that it really happens. Dealing with your debt no longer needs to be a never ending cycle of financial frustration. With the assistance of a reputable company, you can decide to settle your credits and finally look forward to get your finances in order.

Posted by: admin in Credit Cards,Debt,Personal Finance on November 29th, 2011

In his book, Retire Young, Retire Rich, Robert Kiyosaki’s rich dad quoted, ‘All debt is good debt. But not all people know how to use debt, so they turn good debt into bad debt.’ Explaining further, Kiyosaki said that most people know how to get into debt, but the problem is they get into debt and get poorer. He pointed out that debt can be used as a leverage to be financially free, but most people do not know how to use debt in their favor.

True enough, we have heard of countless stories of people getting into debt, some even reaching breakdown due to credit card woes. Many resort to denial and eventually hiding, then haunted by the collection department about overdue payments. It is therefore very important to stress out the responsibility of owning a credit card. The best security that a credit card holder can do is to know the credit card rules as well as the various charges added to the monthly bills. Basically, one has to pay at least the minimum due each month to maintain a good standing. If you are not able to make a payment, it is best to coordinate with the bank before they call you as most banks can help you make a special arrangement and discuss ways to work on finances charges, late charges, etc.

Credit cards can indeed work in your favor to improve your financial standing. When used wisely, it can give you the advantage of purchasing power especially if you have a business. It can also help you build a good credit history which is a valuable asset when applying for car loans or mortgages. If there are horror stories of the use of credit cards, there are also those who enjoy the benefits of owning a credit card as a safer and more convenient tool to make online and phone purchases. Remember that a credit card is an unsecured loan and along with its benefits comes the responsibility of owning one.


Posted by: admin in Business,Debt,Finance on September 6th, 2011

Tales of people ending up in a black hole of credit card debt abound and most people have stumbled upon debt and find themselves  struggling in problematic financial situations. The lack of ready financing can put you and your family in a tough bind especially when you need financial assistance for emergencies and immediate family needs. If you are in a similar situation, a debt settlement help is what you need to start your way to financial recovery.

These days, even companies cannot count themselves immune to late-payment syndrome, and with revenue down and reserves already being tapped, not all small businesses have the cash cushion necessary to survive. There are available debt settlement services to help you have a better look of your financial picture. A reputable debt settlement provider can help you start to deal with your debt accordingly and sort out the debt problems by discussing strategies that can be used to pay off the debt and manage your finances. An effective debt management plan will dramatically change your financial standing so you could perform better and eventually work your way to better manage your cash flow. This way, you are able to look forward to beyond year after year to get your finances in order.


Posted by: admin in Business,Debt,Finance,General,Services on May 17th, 2011

Whether you have a business or working for a company, you are most likely to face some difficulties obtaining capital to finance your business or even needing immediate financing for emergency needs of your family, especially during these times of economic uncertainty.

A popular source of financing is through the form of debt or equity. When borrowing money, you need to consider important factors that could affect the viability of the financing package. These factors include time duration, interest rate, and the management participation of the funds provider. However, external financing is hard to come by, especially during this time when many banks and investors are struggling with financial insecurity.

The good news is that you can still increase your internal cash flows generated by your business or job by looking at other possible sources of financing like cash for title. This is a secured loan that requires the borrower to provide the title of his or her car. It is not necessary that a borrower has a bank account as the loan amount is based on the value of the car (which needs to be paid or nearly paid off) to secure a loan. At whatever stage of growth you are in as an entrepreneur or an employee, it is very important to explore all possible and reliable sources of capital or financing. You need to choose the right mix of debt and equity financing at the least cost that can provide you the most control in managing your finances.