Debt

Review of Financial Consulting Services

After receiving one of those robocalls touting the ability to lower the interest rates on my credit cards, I could’t help to find out exactly what their angle was. It turns out that the company calling was Financial Consulting Services. I decided to play along to see exactly what it is that this company does. Continue reading

How is average daily balance calculated?

The Average Daily Balance, is the average amount that exists in an account over a period of time, the period of time is typically a billing cycle. The average daily balance is calculated by adding the daily balances over a period of time and dividing by the total number of days in that period. This calculation method is used to calculate interest. Continue reading

What is debt consolidation?

Debt consolidation is a process in which one loan is used to pay off many loans. Generally, several loans are combined into one loan. This strategy is advantageous for many reasons. First, it is easy to pay off because it is just one loan instead of several smaller loans. This makes it easier to focus on your debt, intuitively, because everything is located in one place. Another advantage of debt consolidation is that it can lower your overall interest rate. Your interest rate with several loans may be slightly higher than your interest rate with one consolidated loan. In some circumstances, debt consolidation can even secure a fixed interest rate, an advantage rarely offered with smaller individual loans. Continue reading

What is a Judgment?

The process of collecting on an unpaid debt has multiple steps for most creditors. Rather than going ahead and taking the debtor to court, creditors usually try to work out a deal with debtors in order to get payment faster. Still, it is important to know the full process creditors take in trying to collect on unpaid debt to know how you should respond. Continue reading

What is unsecured debt?

In these uncertain times, risks are inevitable. We are now under more pressure from outside forces to make ends meet by whatever means necessary. This in turn, makes risk taking more frequent. In the past, we may have had more secure options for loans to cover expenses, but tough economic times have made this more a luxury than the norm. Because you may be turning to more unsecure debt, it is important to know the ends and outs of unsecured debt before using it. Continue reading