Business consolidating loans
The debt includes a two-year loan for $10,000 at 12% and a four-year loan for $20,000 at 10%.
If that’s not bad enough, fraudulent debt settlement companies often tell customers to stop making payments on their debts and instead pay the company.And now the total loan amount would jump to $37,103.So, that means you shelled out $2,282 , although often the terms are used interchangeably.Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates. But the truth is debt consolidation loans and debt settlement companies suck even more. In fact, you end up paying more and staying in debt longer because of so-called consolidation.Get the facts before you consolidate your debt or work with a settlement company.Debt settlement companies also charge a fee for their "service." Often, the fee is anywhere from 15–20% of your debt.
Think about it this way: If you owe $50,000, your settlement fees would range from $7,500–10,000.
You’re in deep with credit cards, student loan payments and car loans.
Minimum monthly payments aren’t doing the trick to help nix your debt, and you’re flippin’ scared.
But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.
The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. Be on guard for “special” low-interest deals before or after the holidays.
Once their fee is accounted for, they promise to negotiate with your creditors and settle your debts. Well, the debt settlement companies usually don’t deliver on helping you with your debt after they take your money.