December 07, 2001
By: Bev Dodd
Loan for debt: Rates and Terms that fit your budget
When you get your loan for debt and it's time to fix your credit, obtain a copy of The Fair Credit Reporting Act, it's a good place to educate yourself on your rights regarding credit. Make sure your loan for debt doesn't have a balloon payment at the end of its term. We'll discuss this more below.
When you apply for a loan for debt and it's to consolidate your debt into a single monthly payment or you are getting a lower interest rate for easier payments, make sure you understand all the information about the loan for debt. Understand clearly the terms, including the interest rate on the loan. Find out whether the loan will pay off over the life of the loan, or whether you will owe a "balloon" lump sum payment at the end. For many borrowers, balloon payments are just an invitation to another loan, and you will never get free of this debt!
The Fair Credit Reporting Act covers the reporting of debt repayment information. This is great information to have, even if you don't use it immediately. It establishes when a credit reporting agency may provide a report to someone when they make a loan for debt or simply a dept. store account. It states that obsolete information must be taken off (after 7 or 10 years) and gives you the right to know what is in your credit report. It also requires that both a credit bureau and an information provider (such as a department store) have an obligation to correct mistakes. This gives you the right to dispute inaccurate information and add a 100-word statement to your report to explain accurately negative information.
Watch out for teaser rates when you are looking for a loan for debt. Your mailbox may be brimming with unsolicited credit card offers that promise attractive low-interest rates. But if you read the fine print, you'll see that after six months or so the issuer may double the low introductory rate. When the rates go up, you may find yourself owing a lot more money at a high interest rate.
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Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.
Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.