What is a debt consolidation military loan?

A debt consolidation loan is a loan that allows you to roll all of your debts into one low monthly payment.  Banks and financial institutions offer debt consolidation loans at lower rates than the rates that are charged by credit card companies.

What are the benefits of debt consolidation loans?

Click to apply for a debt consolidation military loan

With debt consolidation, you can pay off all of your debts (credit cards, payday loans, medical bills) through an affordable monthly payment plan.  Because you don’t have to deal with creditors anymore, it reduces your stress.  Collection calls and harassing letters from creditors and collection agencies are eliminated.  Your monthly payment is lower than your pre-consolidation payments because you have secured a lower interest rate.  Low debt consolidation loans are also longer term than regular loans.  Budgeting is easier because you have replaced several bills with one manageable payment.  Paying off your debts with a debt consolidation loan improves your credit score.

How can I choose the right debt consolidation military loan?

It helps to shop around.  Before choosing a low debt consolidation loan, investigate a number of financial institutions as loan interest rates vary.  Find the company that requires you to pay the least monthly installment and check the company’s profile and service backgrounds.  Ask for a breakdown of the costs you’ll have to pay and be sure that your monthly loan payment is lower than your current bill payments before you sign any paperwork.

What about my credit score?

In order to qualify for a debt consolidation loan, you need evidence of income and a good credit score.  Lenders want to see that you can make payments on the consolidation loan to repay the monthly balance and your other living expenses.  Ironically, you won’t get approved for a loan if the total amount that you owe is too low.  Newsflash!  Despite their claim that they want to help you save money, lenders are in this to make money off of you.  If you can’t prove you can pay them back or the amount of money they might make from you isn’t worth their time and effort, then they won’t approve you for a loan.

What should I do before I apply for a debt consolidation loan? 

Before you apply, check your credit report so that you can identify the credit problems that you want to eliminate with a low debt consolidation loan.  Calculate the total amount you owe so you can decide how much you need to borrow to pay off your debt.  Decide which bills you want to pay off.  In some cases borrowers have more debt than the consolidation loan amount available.  Finally, plan a budget so that you can continue to pay for your living expenses as well as pay down your consolidated debt.

Are there any disadvantages to a debt consolidation loan?

While your monthly payment is low, you pay much more in total interest because the loan is longer term.  Moreover, a debt consolidation loan doesn’t provide any tax benefits.  This is because the interest on a personal loan is not tax deductible.

Should I consolidate my debt?

The answer is different for everyone and depends on your current financial situation. Contact a financial professional or trusted friend who can help you crunch the numbers so you can decide whether or not debt consolidation can help you save money.

Get a high paying job

The best and fastest way to pay off student loans is working.  If you’re lucky enough to work a high paying job, so much the better.  By living under your means, making more money than you spend, you can make double payments and reduce your loan balance in no time.

Live Like a Student

If you can live the way you did while you attended college – staying away from shopping malls, reading books in the library, eating cheap meals (Yes, that includes Ramen noodles), you’ll have that much more money to use to pay down your debt.

Be a Paid Designated Driver

Raymer McGuire, a deep in debt Boston college student, tapped into his entrepreneurial side and charged drunken students to drive them safely home in their own cars.  Less than a year after starting this business, McGuire sold 41% of it for $85,000.

Party! Party! Party! 

With the kids that is.  If you’re not afraid of losing some of your dignity, or a few kicks in the groin from five-year-olds, then entertaining kids at home parties is one way to pay down a student loan.  Some clowns and magicians at home parties earn $50 for two hour’s work while popular balloon-animal clowns can make $0-$300 a day.

Clean Houses

Distribute flyers offering your services as a once-a-week house cleaner.  Use a couple of free hours on a Saturday to thoroughly clean someone’s house.  Depending on the area, you can earn anywhere from $10 to $25 an hour.  With regular customers and word of mouth referrals, you’ll pay down your debt sooner than you think.

Sell Garbage

The saying that “one man’s trash is another man’s treasure” is true.  Take a drive through rich neighborhoods on garbage day.  Pick up usable “garbage” to sell online, through the classifieds, to your friends or at a garage sale.  Quite often you’ll find items that are in excellent condition that you can sell at rock bottom prices since you paid nothing up front.

Stick to Your Knitting

If you can crochet, knit or sew, then upload photos of your talent online to sell your items for some extra cash.  A variety of websites exist that allow you to set up your own craft store online.  It may not be enough to live on, but it will be a way to pay down your debt while doing something you enjoy.

Teaching/Tutoring

No matter what your area of expertise, someone out there wants to learn more about what you know.  Earn enough to pay off your student loans by sharing your knowledge through tutoring or teaching.  If you were an English major, you can tutor high school students on their English essays.  You can teach immigrants how to speak English.  If you are a fantastic test taker, you can train people about standardized test preparation.

Student Loan Forgiveness

With loan forgiveness, some or all of your loans are erased after you work or volunteer under a particular organization’s specific terms.  Keep good records of your student loan payment history as most loan forgiveness programs won’t consider you if you haven’t made a payment in over 180 days.  Here is a list of loan forgiveness programs:

Participate in Market Research Surveys

Get paid to voice your opinion.  Can it get any better than that?  Contact a local market research company; provide them with your name and contact information and report to their place of business when called upon.  Many of these surveys are done after business hours – evenings and weekends and pay quite well.  One survey the writer of this article participated in paid $75 for 3 hours of listening to the first 5 seconds of a song, and asked her to rate whether or not it was played too often or not often enough on local radio stations.

Paying off hefty student loans may seem like an impossible task.  But remember, you didn’t spend the entire balance in one day.  Paying them down takes time.  With perseverance and using some of these ideas, you’ll eventually reach your goal.

Interest Rate

When it comes to car loans, many consumers only look at their monthly payment, rather than how much they’re paying for the car.  While you may have a low monthly payment, you need to consider how long you will be making payments.  If the loan term is long enough, any payment level can be reached and you’ll end up paying more in interest.  You, the buyer, are in the driver’s seat and can negotiate the interest rate.  If the dealer won’t lower the rate, then walk away.  Make sure the details are accurately spelled out in the contract, that the agreed upon interest rate doesn’t change during the loan’s term, that there is no “subject to financing” or “subject to approval” statements and ask about prepayment penalties before you sign.  Also make sure that the contract you are signing is a final contract.  In some cases the dealer collects the down payment, tells you how much your monthly payment will be and sends you home in the car.  Hours later the dealer calls, explaining that the financing didn’t go through, they need the car back and you to sign a new contract.  This is a spot delivery.  The dealer’s new contract requires a larger down payment and a higher monthly payment, giving new meaning to the “subject to approval” statement.  This is why it’s ideal to shop for a loan at banks or credit unions before you even step foot on the dealer’s lot.

Insurance

Another way dealers try to drive up the costs of financing is through insurance.  Many dealers offer life and disability insurance as a means of protecting your investment should something happen to you.  While the dealer may imply that this is required, it is not.  Also be on the lookout for this insurance on the paperwork, as it is often added without your knowledge.  Banks and credit unions offer this type of insurance at a much better rate and sometimes include it for free when you’re financing your car with them.

Extended Warranty

Many car experts believe that the warranties that come with new cars are comprehensive enough that an extended warranty is unnecessary.  But dealers almost always offer extended warranties on a new car.  If you believe you still need an extended warranty, it pays to do some research.  By exploring online sources, banks and credit unions, you can compare and get a better price, sometimes for half of what the dealer charges.

Added Protection

Dealers try to add more to the bottom line by offering rust protection, undercoating, fabric protection and paint protection.  Rust protection and undercoating are both applied at the car factory.  Don’t pay to have it done again.  Using polymer sealant car wax is the best way to protect your car’s paint and no matter who applies it, you or the dealer, it has to be reapplied every six months.  You’ll save a lot more money if it’s you.  The same is true of fabric protection.  Buy a can of fabric protector at your local car parts store and do it yourself.

Car Alarm and Window Etching

Most reputable auto shops will install an alarm system that’s just as good as the dealer’s and often for $500 less.  While window etching the Vehicle Identification Number (VIN) on all the car’s windows will deter many car thieves, dealers charge hundreds of dollars when you can do it yourself for between $20 to $30 dollars.  But if you still want the dealer to add these features, you can better negotiate a fair price knowing their true costs.

Armed with these facts and the knowledge of how to get the best deal, you’ll be able to get a great military car loan at a good rate.  To get started with the loan process, apply here.

Car Loans

Knowing your credit score before you buy a car allows you to confidently shop for a car with a low interest rate.  A good credit score empowers you to secure a low interest car loan with a rate that’s lower than the average new car loan.

Renting

A high credit score means you pay your bills on time and a low credit score means you are a risk.  With a good credit score, landlords see that you are low-risk when it comes to paying your rent on time, making you preferable to other potential renters.  Pulling the FICO scores yourself, rather than having a realtor or landlord pull them, saves you time and money as well.

Car Insurance

Insurance companies associate a good credit score with responsible driving and less of a risk of using auto insurance.  Historically, people with bad credit have filed more claims and these people are penalized with higher insurance premiums.  For this reason, drivers with good credit scores get preferred rates on car insurance.

Cell Phones

Cell phone providers require a credit check because, like landlords, they equate lower credit scores with a higher risk of not being able to pay the monthly bill.  With poor credit, cell providers offer a pay-as-you-go plan instead of a contract.  But with a good credit score, your monthly rate decreases dramatically, you avoid paying a security deposit and you can take advantage of hundred-dollar discounts on the latest phones that come with signing a contract.

Utility Security Deposits

When you establish utility service in your name or transfer service to another residence, a good credit score means you won’t have to pay a $100 to $200 security deposit. These deposits are a major inconvenience if you have to relocate.

Better Credit Cards and Loans

If you have shaky credit, you avoid making new credit card or loan applications because you’re scared of being turned down.  While not a guarantee, you’re more likely to be approved with an excellent credit score.  Good credit scores also mean you can negotiate a lower interest rate for a loan or a credit card by simply referencing your score and explaining that you’ve received offers from other companies based on your credit score.  Banks are willing to lend more money to borrowers with higher credit scores because they have a history of paying back their debt on time.

Mortgage

Good credit scores go a long way towards making sure you get the best rates available for a mortgage.  Lenders offer borrowers with high FICO scores (760 to 850) lower interest rates and more loan choices.  Lenders place borrowers with scores of 620 or lower in the “subprime” category, and quote significantly higher interest rates on fewer varieties of loans. A 500-520 FICO score is usually the minimum range that will qualify for a mortgage.

While paying down debt is easier said than done, the benefits associated with good credit scores make doing so well worth the effort.

Many unsuspecting people can easily fall victim to this privacy crime, which can involve Social Security Number (SSN) theft, credit card or debit card theft, credit/debit card number theft, bank Personal Identification Number (PIN) theft, and more.

So how does it happen? Identity thieves can steal personal identification from your mailbox; through “dumpster-diving” (through going the garbage or recycle bin for credit card statements, etc.); through “shoulder surfing” (watching for your PIN while you use the ATM or your credit card number while you make a purchase); and via the Internet.

Thankfully, while there’s no 100%-guaranteed safety net against identity theft and crimes, there are a number of simple steps you can take to protect your identity from thieves and reduce your risk of becoming a victim.

Protect your Social Security Number

Safeguarding your SSN is one way to protect yourself from identity thieves. Don’t carry your card with you. Don’t write the number down on your checks. Never give out your SSN to people or companies with whom you’re not familiar until you confirm their identities and verify their need to know your number.

Protect your PIN

Identity thieves can steal your PIN in a number of different ways. Here’s how to protect yourself:

-don’t carry your PIN with you; memorize it

-don’t write it down

-don’t share your PIN with anyone

-keep it out of others’ views when making a purchase or banking

-change your PIN every year

Protect your cards

Keep a close eye on your credit and debit cards. Take only the ones you’ll need when you’re out; keep the rest in a secure place at home. Report any lost or stolen cards immediately.

Get a shredder—and use it

Dumpster- and recycle bin-diving might be considered nasty, but it’s one surefire way for identity thieves to find “treasure”—e.g., credit card statements that people haven’t bothered to shred or rip up.

Invest in a shredder so you can easily destroy all private records and statements before throwing them out or recycling them. Even without a shredder, you can still rip or cut up your statements.

Monitor your mailbox

Mail theft is more common than you might think. While you might be more inclined to wait expectantly for a check, a letter, a magazine, or a package to arrive, you might be less likely to be keeping track of bills, invoices, bank statements, and credit card solicitations, which all contain personal and financial identifying information.

Empty your mailbox frequently or consider acquiring a lock or P.O. box. You may also want to look into receiving your bills and statements via email. When you’re out of town, have someone pick up your mail for you.

Check your accounts

Be sure to check your bank account and credit card balances on a regular basis; report any suspicious or fraudulent activity as soon as possible. If you bank online, you can check your accounts frequently. If you wait for monthly statements, write down the date of when to expect these in the mail; if a statement doesn’t arrive on time, call your bank.

Avoid the paper trail

Keep all receipts, etc. (from the ATM, credit card purchases, etc.) with you until you don’t need them anymore; at that point, destroy them.

Be smart online

Internet identity theft is growing, so be cautious when online. Update your virus protection software to prevent your computer from being hacked. Avoid downloading files from sources you don’t trust. Be careful about giving out any personal information online—always confirm identities and ensure the use of secure encryption software for online transactions.

• Paying more than the minimum will actually save the consumer money because of decreasing the amount of finance charges. A person could save hundreds of dollars in interest and finance charges by paying an extra $20.00 or more per month.
• Increasing credit line: when more than the minimum payment is made on a credit card, it increases the line of credit available each month, which can come in handy during an emergency.
• To prepare for applying for a mortgage: when a consumer is planning on making a big ticket purchase in the future, it is a good reflection on credit to pay things off in a timely manner. Raise the minimum payments on credit card balances which will show you are reliable and can pay off obligations in a timely manner.
• Improve credit score: when a credit card balance is high in comparison to your credit limit or income to debt ratio, it could result in having a detrimental effect on credit score. Paying the minimum balance only each month, does not really make much of a dent in the balance, so it is better to pay off more than required to get the amount down sooner.
• Pay off the balance sooner: Not only does paying beyond the minimum clear the balance of a credit card much sooner, it helps reduce the fees associated with interest and finances charges.

If a person only makes the minimum monthly payment on credit cards, it can take several years to repay the balance. A person not only wastes needless money on interest, but also subjects their credit to possibly taking a negative hit as well. To see the estimated pay off time of making the minimum only payment each month, there are online credit card minimum payment calculators which can give a person a good idea of what to expect. It is highly advised to add a bit more cash to that payment each month to get your balance down and avoid falling prey to living on credit and beyond monetary means.

The number of a person’s credit score will show the lender how good of a risk a person is when it comes time to pay back a loan. The higher a credit score is the better the chances are that a person is a good candidate to repay and the individual will get a better interest rate from the lender. A bad credit score not only not only costs a person thousands of dollars in high interest rates, but it may also mean the individual may not even qualify to receive a loan.

There are certain tips a person can do now to increase their credit score, and the following article is designed to inform people about what to do. In order to get credit and have a good interest rate a person needs to have a high credit score, everything goes hand in hand and one cannot happen without the other. The following tips can be used to improve your credit score:

• Pay bills on time: paying bills on time gives the lender a good idea of how timely a person has paid their bills in the past. Approximately 35% of your credit score is based upon credit history, and delinquent payments and collections actions severely damage a credit rating.
• Do not pay off closed accounts: sometimes closing an old account will actually reduce a person’s available total credit, which changes the amount of the income to debt ratio, which can in turn lower a credit score.
• Get a small loan: in order to qualify for a larger loan at some point in the future, a person should establish a firm credit history. If you are an individual that has little to no credit history, it may be a good idea to get a credit card with a small limit or borrow small amounts of money to establish credit. If you do not have debt you cannot possibly show a potential lender you have a good repayment history, so get credit in small amounts and make timely payments.
• Keep credit card balances low: a high level of outstanding debt can reduce a person’s credit score. If you max out your credit cards, it can result in a credit score plummeting by as much as 70 points. Do not close an account with a high interest rate, instead transfer the balance to a card with a lower interest rate and make payments in a timely manner. Shutting down an older card detracts from your credit record history and makes you seem less credit worthy, meaning you may not be considered for loans at some point in the future.

Following the above mentioned tips allows a person to be proactive about their credit score and shows simple things anyone can do to improve the rating. Always be aware of what is contained on your credit record and do not apply for too many loans at one time because it can actually result in a hit on your credit score. Although it may not seem like it now, paying bills on time and incorporating a few simple tips can help you improve your credit score and someday make you eligible for a loan to purchase the things you have always wanted.

Generally speaking, military loans are viable financial options to military personnel and families because of their generally low-interest rates as well as the fact that for most members, qualifying and eligibility is usually not a problem, the application process is fast and easy, and approval is almost guaranteed for members in good standing.

Of course, income and credit are also major determining factors. However, most active-duty military members have a guaranteed stable and steady stream of income, lowering risk of loan default, which enables quick approval for military loan applicants.

There are many different types of military loans. First of all, there are particular military loans based on what sector of the military you have worked in or are currently involved with. There are Air Force loans, Army loans, Navy loans, Marine loans and Coast Guard loans. While you can find general military loans, it’s generally a good idea to stick with the loan type offered for your particular section of the Armed Forces. If you work in the Navy, for example, it just makes sense to apply for a Navy loan.

Military loans can also differ in their amounts as well as terms and conditions. Loans can vary in amounts from $500 up to $10,000. Some loans will have to be paid off sooner than others; some monthly payments are higher than others; some loans have higher interest rates than others.

Military loans also differ depending on what you want the loan for. For example, there are personal loans for your own use and spending, car loans to buy a new car, mortgage loans for a new home, and other military loans for home or car repairs, vacation and debt consolidation.

There are also military loans geared toward active-duty members, as well as loans meant for career-retired veterans. For example, VA (Veteran Affairs) loans are low-interest mortgage loans for eligible retired veterans to purchase, build, renovate or refinance a home.

Finally, another type of military loan is a payday loan. Payday military lenders provide short-term, often high-interest loans. While payday loans, especially as lenders are accused of targeting military personnel, are highly controversial, the reality is that they fill a need and can be helpful short-term solutions to unexpected expenses and other financial reasons for those in the military.

Are you or have you been involved in the United States military? Do you need a loan? Whether you are currently in active duty with the military or a retired veteran of war, the good news is that there are many different military loans that you could qualify for.

Military loans (also referred to as personal military loans, military cash loans or personal loans) are meant strictly for military personnel, and are specifically (and exclusively) geared toward the financial needs and goals of military members—both active and retired.

Army loans, Navy loans, Air Force loans, VA loans are all viable alternatives to traditional payday loans for military personnel. These loans are available to both men and women who serve in the Army, Navy, Air Force, Marines and Coast Guard. In addition, military loans are available for 20-year, career-retired military veterans. Further, current DOD workers over Grade 6 are also often eligible to apply for certain military loans.

Application is easy, and there are many different military lending sites and military lenders online that offer simple, straightforward and convenient online application forms. You could be approved for up to $10,000 in less than 24 hours!

Of course, several qualifications and even restrictions are involved with military lending. For example, you will need to provide proof of your rank and grade, of your military ID and sometimes LES, as well as a stable and high enough income, and acceptable credit. There are also generally terms and conditions for married, separated and divorced members. But most military personnel are approved and accepted to use the loan for whatever they need it for!

Some military personnel require mortgages with low interest rates, and military lenders can help with that. VA (Veteran Affairs) loans, for example, are mortgage loans meant for retired veterans. VA loans are generally given without any down payment or collateral necessary, and often carry significantly lower interest rates than other conventional loans.

Other possible reasons for officers, soldiers, sailors and veterans to opt for military lending include car loans, car and home repairs, medical bills and other unexpected bills and expenses, debt consolidation, education or other career-training advancement opportunities, vacation, and more.

No matter what sector of the military you are involved in, and whether you are in current active duty or you’ve been retired for 30 years, you will be able to find a military loan that suits your preferences, needs and goals.

First, you should understand that the fast military loans do have a maximum. You can generally only borrow up to $10,000 at a time. If you need a larger loan, there are other ways to go. With a little research you will be able to find a military benefit that can help you in such a situation. For the purposes of military loans in general, though, we must look at a maximum of $10,000. Once you have your money, then you should think about how you pay it back.

For most military loans, the member of the Air Force, Marines, or other branch of the military will get one full year, or 12 months, to pay back the money. The payments can be made a number of ways, which are totally up to you in most cases. You can pay monthly, weekly, or through your paycheck. It just depends on how you would like to set it up. Just remember, though, that even though the interest rate is low, you will likely be compounding it daily as your loan sits unpaid.

The most common way to pay back your military loan is through allotments. When the money is taken directly from your military paycheck to pay off your military loan, you are taking late fees out of the equation. In fact, some companies will require that you pay back your loan this way. They know the money is coming, you don’t have to remember to write a check each month, and your entire loan will undoubtedly be paid off in time. It is a great deal.

You should note as well that there are no pre-payment penalties on military loans. No matter how early you pay off the money you borrowed, you will only pay the amount. No fees, no extra interest, and no problems with early payment. That means that you can save on interest if you are able to get the money together earlier. Good news for you and your bank account if you are a military personnel.

Military loans are becoming a benefit that is used often by those in the Air Force, Army, Navy, Marines, or even National Guard. With the information above, you now have a better understanding not only of what a military loan is, but also how the repayment of such a loan is possible. It is a great way to get your emergency cash and the repayment is easy.