Total revolving debt, mainly credit card dues, has touched $1.04 trillion in America, which is a record from the 2008 peak. This mammoth figure is despite the soaring cost of debt, which at 15.5% is up by 300 basis points from the corresponding figure five years earlier. In a country that is a slave to consumerism, it will not surprise people in the know that in just 12 months, American credit cardholders have paid an astounding $104 billion in interest and fees. According to a forbes.com report that puts out these rather alarming figures, this figure is a whopping 35% more than what it was five years ago.

While these figures may thrill economists, it actually represents the mindboggling misery of millions of cardholders, who are caught in debt traps of their own making, due to their profligate card swiping habits and the habit of spending far more than what they can afford. If making changes to your lifestyle and attempting to save more to pay off the credit card debt have not proved successful, it may be the right time for you to examine debt consolidation as a strategy to resolve your financial situation. Simple as the method is of obtaining a new loan for paying off existing card dues, it can be very easy for novices to commit certain common debt consolidation mistakes that can render the effort fruitless and leave you frustrated and perhaps in a worse financial situation than before. Here’s what to watch out for:

Assuming Debt Consolidation Is the Best Route of Resolving Debt

Just because debt consolidation is widely advertised by private loan companies as the ultimate solution to resolving the debt burden, it is not necessarily always so. There are a number of other methods like credit counseling, debt management, and even bankruptcy that can be used depending on your specific financial circumstances for better results. It is important to examine all possible methods so that you can make the most appropriate selection. If you are unsure, it can be a good idea to consult a financial counselor who can suggest the best method for getting on top of debt.

Not Researching Debt Consolidation Loan Providers Adequately

You should know that even as there is intense competition among the private debt consolidation companies for business, there are a lot of lenders who are just waiting to lure unsuspecting customers into their fold and rip them off with high APRs disguised as various charges and fees. It is very important that you deal only with companies that have a very good reputation in the market such as nationaldebtreliefprograms.com so that you can be fairly sure that they will not have practices that are unfair. Apart from the rate of interest, you should carefully check out the terms of the contract to ensure that there are no nasty surprises lurking within.

Starting to Use the Credit Cards Wildly Again

When you consolidate your credit card debt, you take on a new loan to extinguish all the existing dues and your credit cards now have zero dues on them. Often, for many people, this is a very powerful temptation to start using their credit cards once more and they pile up debt that they cannot repay with their incomes. In fact, the single largest reason why debt consolidation becomes a failure for people is this inability to restrict the use of the credit cards after paying them off. If you want to get out of the debt trap, you will need to be financially disciplined, restrict your lifestyle spending, and ensure that you lock away all your credit card except for one that you reserve for emergency use. It is not a good idea to close all your credit cards as you will lose out on the benefit of having a minimum credit utilization ratio that is important for boosting your credit score.

Not Including the High-Interest Debts in the Consolidation

Perhaps the biggest advantage of consolidating your credit card debts is that you get the opportunity of retiring the high-interest debt with a loan that carries a much lower coupon rate. If you have a good credit score, the difference between the interest rate charged by the card companies and that on a debt consolidation loan from a private lender can be quite substantial. Over a period, it will mean that you will be able to save a lot of interest expense. However, for the maximum benefit, you will need to ensure that you have included all the debts that carry the highest rates of interest and also check that you have not included any debt that may actually have a lower rate of interest than the new loan.

Failing to Check Your Credit Reports

The rate of interest that you will be able to get on your debt consolidation loan largely depends on your credit report. It is a good idea not to take your credit reports for granted but to get a copy from each of the three leading credit bureaus and check them for accuracy. If you find something that is inaccurate be sure to report it and get it rectified before applying for the debt consolidation loan. If your credit score is poor, you should not waste time applying to banks and credit unions but instead focus on private lenders who specialize in lending to customers with similar profiles. Remember that if you have a poor credit score, getting a decent rate of interest may be very difficult so you may not be able to achieve any significant savings on the interest front, however, the other benefits of debt consolidation will still accrue.

Conclusion

When you have clocked up a huge amount of debt on your credit cards and are finding it difficult to make the monthly payments either because they are unaffordable or simply because there are too many credit cards to keep track of, debt consolidation can save you from a lot of stress. However, unless you do it right and are disciplined enough to stick with the program till you wipe off your debts; it can rebound in your face and leave you worse off.

Both debt consolidation and debt settlement have its own signature end results. It is these possible results of the two that you should know so that you can make an informed decision and choose the best option between debt consolidation and debt settlement.

Debt consolidation is very useful and helps people struggling with multiple debts to get their financial situation back on track. The other features of debt consolidation are:

• It reduces the number of loans but does not reduce the total amount of loan outstanding.
• It reduces the total monthly payment amount due to its lower interest rate.
• It may have a longer tenure as well depending on the type of loan you wish to take.
• You have different options to choose from such as an unsecured personal loan or a secured home equity loan if the conditions permit you.
• Two of the major debt consolidation methods are namely a personal loan and a balance transfer credit card.
• The entire process of debt consolidation is very simple wherein you apply for the specific type of debt consolidation loan.

This is supposed to be the most effective and realistic way to pay off your debt. As you do not have to deal with multiple creditors any more, this seems to be a good deal, at least on paper.

However, there is no reason to get over excited about consolidating your debts. This is because the scenario sketched out above may be ideal but it is certainly not guaranteed. To make debt consolidation work best for you, everything has to work out well and in your favor.

However, there are plenty of different outcomes possible when you consider consolidating your loans. To understand this point, you will need to look deeper into the matter.

• First, you will need to realize that debt consolidation is not a solution to your debt problems as in it or by itself.
• This is just a tool that will help you to manage and handle your finance in a more effective and better way.
• It will give you some breathing room with its lower monthly payments as well as providing you with some extra money to add on to your monthly payments.
• It will not affect your credit score or credit history in an adverse manner.

All these outcomes largely depend on the present circumstances you are in as well as the way in which you use this tool and certainly not on the presence of the tool by itself.

As for debt settlement on the other hand, it too has its specific features and benefits. If you go through the debt settlement ratings you will find that this is also a very popular option of the people struggling with their debts. The significant features of debt settlement are:

• In this process, you typically deal with one particular loan that you are finding difficult to continue paying every month.
• You talk with your creditor for lowering the outstanding balance amount, or reduce the rate of interest, or waive a few charges and fees and even extend the tenure of the loan.
• You will need to have the proper resources of your own well-planned and calculated beforehand so that you can keep up with your promised repayment schedule should the creditor agrees to make any amendments.
• The most significant as well as differentiating feature of debt settlement is that it will affect your FICO score in a negative manner. The fact that your loan amount is reduced is detrimental for your credit. It will affect your loan eligibility criteria and quotient in the future.

Considering the features of both, debt settlement and debt consolidation and weighing it, you may find that opting for a debt consolidation loan is more sensible, prudent and feasible. However, the final results of debt consolidation, as well as debt settlement, will entirely depend on the person.

The possible outcomes

If you opt for debt consolidation, then these are the five possible outcomes of it. Know these well so that you know for sure what you are getting into.

• Your application is denied: Well, this happens most of the time and if it happens to you then your dreams of having a better financial future will end abruptly. Usually, an application for debt consolidation can be denied if you have bad credit. If your credit score is low then the creditor will look for the history of missed debt payments. If you are too great a risk to lend, it will leave you in the same place. However, if you have bad credit, turn towards specific lenders who specialize in offering loans against bad credit. Expect terms and conditions that will be less friendly though.
• Consolidate a portion: When you consolidate debts you will not be able to include all your debts in it but a portion of your entire outstanding balance. You may not get approval for a large amount as a loan that is enough to consolidate all your large sums at once. In this situation, you will have to formulate a plan to figure out what to include and what to exclude. Consider including the loans that are costing you more money. Always follow the proper budget for this. You may consider taking out more than one consolidation loan if situations needs and circumstances permit.
• Scammed: There is also a high chance of being scammed with so many debt consolidation companies out there and none being created equally. Tall promises and alluring ads will be made but if you are perceptive, you will be able to avoid these scams. Therefore, without being persuasive, research before you select a company. Charging service fees after completion of the work, transparency, accountability, proper paperwork, accreditation, reliability and reputation in the market are a few factors to check for choosing the right company.

Most importantly, debt consolidation may not provide the desired outcome if you are not considerate. You should not fall back to your bad habit of impulsive buying and stick to the plan you will hardly succeed in becoming debt free.

When you plan to make a lump sum financial investment or spend in tangible or intangible items, you look for a personal loan. Getting a personal loan is required at different other scenarios or conditions as well. Overall, a personal loan is a viable option for those who are in need of some money. For example, you may want to buy a new car.

For that purpose, you can go for a personal loan. You may have met an accident and sustained severe injuries. To deal with substantial medical expenses, you would go for a personal loan. Various other scenarios could be there, where you would require a personal loan.

When it comes to getting a personal loan, people look for various lenders. A lot of options are there for the borrowers. The finest option is definitely the bank loan. When you go for the bank loan, you have the choice to get a flexible repayment schedule. Nevertheless, bank loans come with a low rate of interest.

In the case of other loans, the rate of interest is high, and that is why people mostly seek personal loans from banks. However, in certain conditions, the bank may turn down your loan request. For example, you already have a few loans from the bank. You may also have a low credit rating. In such conditions, you need to choose a different lender which may offer bad credit personal loans.

In the following section, we shall find the top reasons to opt for a personal loan. Opting for a personal loan in such situations is actually a good idea. So, find more information in this regard below.

1. Debt Consolidation

At different stages, we require money. Thus, at different stages of life, we go for some loans. For small loan amount, we generally go to our friends or relative. Many people purchase things on credit cards. Most of the times, we pay the bills through credit cards. Apart from these, people also go for a lot of other loans from different lenders. When debt becomes too many from different lenders, it is difficult to plan the repayment properly. You may miss out the repayment date of your credit cards when paying money to other lenders.

In order to cut down such hassles, people go for a personal loan to settle all the debts. Such loan is known as debt consolidation loan. To pay off the debts to reduce hassles in life, people opt for the debt consolidation loan. Now, you have only one debt to repay. It will be easier for you to plan and repay the debt in a more systematic process. That is the reason why people go for debt consolidation loans.

2. Home Remodeling

We live in a home where we can find peace as well as comfort. To keep the peace and comfort in the house intact, we need to make some investment time to time. Home remodeling is something that enhances the utility of the house resources. Nevertheless, it intends providing more comfort and enjoyment in living. If you are considering remodeling your home, you need to be careful on a few aspects.

The most important thing is the budget. You may have to make substantial expenses. Once you get the estimation from a home remodeling contractor, you need to make arrangement for the money. For the best arrangement, you can opt for the personal loan. Banks offer personal loan for house remodeling. If not a bank loan, you shall get many other reputed lenders to offer you home remodeling loan.

3. Dealing with Wedding Expenses

A wedding is a big event for everyone, and we make a lot of expenses to make this day extremely special as well as faultless. In a contemporary wedding, a lot of expenses are involved. From renting the wedding the venue to decorating the place and from food expenses to hospitality service for the guests, plenty of expenses have been done by us at the wedding event. If you need money for a wedding, you can go for a personal loan.

People commonly seek a personal loan for a wedding at the banks. It fetches them the money which they can use for expensing on making the wedding event successful as well as charming for the guests.

4. Money for Moving Expenses

Many people have transferable jobs, and they have to plan for moving time to time. Moving to a new place is not an easy thing, as you need to move all your belongings to that new place. If you are moving to another state or country, you have to bear with hefty expenses. To deal with such expenses, a personal loan is a good option for many people. Choosing personal loan helps in meeting the expenses that are associated with moving to a new place. To learn more about the personal loan and other lending options, you can check libertylending.com

Paying medical bills

Medical bills are unavoidable, and at times they surge up to such a level that it becomes almost impossible to pay off without taking a personal loan. It includes cosmetic surgery, orthodontics, dental Services, bariatric and fertility treatments that usually amount to more than $5000.

Going for your dream holiday destination

It is true that going for an average vacation will not require any personal loan, but what about the luxury cruise or a honeymoon? This is where things get expensive, and you may need to go for taking a personal loan.

Wrapping up

Though we have discussed numerous reasons for taking a personal loan, it is important to keep in mind that you need to pay them back. When you take a personal loan for paying off your credit cards or conducting the most beautiful wedding in the town, you are simply borrowing money which you need to repay. Personal loans are undoubtedly one of the best ways of consolidating debts and making investments, but always ensure that you responsibly use them.

If you wish to know more about taking personal loans, stay tuned to us! Also, subscribe with us for the latest updates.

Luxury jewelry is not a whimsical shopping decision. It is a careful and calculated move that decidedly elevates your jewelry collection and adds value to it. Your first luxury jewelry can be a hand-me-down from your mother or older sibling, or it can be your first treat to yourself after the first big payday. However, if you are looking for engagement jewelry, it can be the game changer you have been searching this long.

How to pick the right jewelry design?

While choosing our engagement ring, only a handful of us think logically. Most people just go with their heart and end up with a big hole in their savings. There are several ways to save money even when you are shopping for diamond rings from the luxury jewelry section. The gemstone, its quality, and cut, its mounting style, color, clarity, and carat will determine the final price of the spinner ring or the pendant. Today, a lot of young men and women prefer pendants instead of the traditional ring to pop the question. Choosing the right jewelry type, the metal and gemstone can help you save money that you can spend on your wedding celebrations.

Whether you are looking for sterling silver chains or white gold bands, or even rose gold pendants, make sure to pick the right design that reflects your style and taste. This will not only save you money but also make sure that your luxury jewelry becomes a timeless piece that you can enjoy for years to come.

Before purchasing the ring or pendant, decide if you want to use your credit card or cash. You can also opt-in for store-provided financing, but you need to check with the store first to see what payment options they have. Speak with the jeweler about your budget and find out about the extra expenses you might have to bear to personalize the item. Luxury jewelry pieces are usually unique, and they do not come with personalization options. So, if your priority is to gift something with a touch of creativity, you might want to select a store that does customization work. You might as well check out a trusty jeweler who can recreate a famous luxury jewelry piece for your special someone so that you can add your initials, a special quote or fingerprints.

How is fine jewelry becoming more affordable?

Finding Luxury Jewelry for Sale within your budget is not a challenge if you know where to look. Today, the line between fashion jewelry and luxury jewelry is becoming increasingly blurry, which is a great thing for the fashion conscious and environmentally conscious millennials. Several luxury jewelry brands are now creating designs that can become a part of someone’s daily wear. Most importantly, an increasing number of luxury brands are now creating designs suitable for men’s everyday wear. There may have been a time when jewelry was a woman’s field of expertise, but now, men are quickly making up for their lack of interest in fine jewelry. Every well-known fashion label has their niche collection of rings, bracelets, watches and watch straps, buttons for dress shirts, cufflinks and tie pins exclusively for men. The 21st century has ushered a new era for luxury jewelry.

How is luxury jewelry changing their target buyers?

Apart from becoming more popular than the yesteryears, fine jewelry brands are growing more approachable for the youth of today. They are coming out with budget options and End of Season Sales, which make their most iconic collections affordable for Gen X and millennials. These brands are gradually opening up to the use of leather and sustainable fabric that is appealing to a wider audience. The initial collections of most brands featured delicate work in gold, white gold and platinum only. Their choice of gemstones varied little with the lead spots going to diamond, sapphires, and rubies only. However, many of them are now using semiprecious gemstones and lab-grown gemstones like pyrite, white onyx, and amethysts.  

What are the newest trends in luxury jewelry?

In short, luxury jewelry has become a lot less formal than it was in the last decade. One could not dream of wearing gold in blue, brown and red hues even in 2010! However, the fusion of fashion and fine has made it possible to craft dreams into reality using precious metals and gemstones. We are seeing many edgy designs and statement pieces in the world of luxury jewelry that definitely draw inspiration from fine jewelry and luxury pieces. Creating alternative designs has been the trend among luxury brands for the past few years. The unpredictability in their themes and looks is what the new generations welcome the most. With the unique elements of “less formal” designs, luxury jewelry has conquered the hearts of millions of young buyers and veteran collectors alike.

One of the distinct trends we have observed in fine jewelry and luxury jewelry is the use of rough, uncut gemstones. The combination of an ombre tone of the mental with uncut gems like jade and black diamonds can create unique statement styles that are non-replicable. This trend proudly turns any flaw present in the gems into integral features. The only reason people rely more on reputed brands for buying these statement pieces is due to their decades’ worth of experience with jewelry. It requires finesse and vision to turn something as raw as uncut sapphires and diamonds to statement jewelry.

Why buy luxury jewelry?

Luxury jewelry is not available to a broader market through smartphones and desktops. Almost all the famous brands and the evolving ones have dedicated websites. Some of them also feature on retail seller websites, which was unthinkable, even a couple of years ago. These websites give incredible offers and secure payment options to all buyers. Multiple boutiques are emerging across the world that specializes in bespoke fine design luxury jewelry. This evolution of luxury jewelry is putting these unique creations within reach of all shoppers around the world. Shopping for jewelry online has become convenient and safe. Most sellers offer complete documentation and certificates of the gemstones they have used in their collection. It is no longer a challenge to pick an engagement ring or a man-gagement ring. No matter what type of jewelry you prefer, you can browse them all and purchase them with the click of one button from the comforts of your home.