Personal Finance and Money Management

Many people suffering from deep debt obligations often look towards debt consolidation as the answer to their problems. Sometimes the debt is so painful, they don’t always look at both the pros and cons of this debt solution though, so we’ll take a brief look here.

First though, what is debt consolidation? Simply put, it’s the process of combining all your debts into one. If you have ten debts of $10,000 each, then you have a total debt of $100,000. Some of those debts however, might be generating an additional 10% interest, while others are generating 15%-20% interest. In other words: Some of your debt is more expensive than others.

This is where debt consolidation comes into play. In th

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Dear Creditnet: My fiancé and I are new to credit cards (we’ve only used debit cards in the past), and we’re looking to get one that will give us hotel reward points.

Any idea which card would help us better our credit scores while banking hotel points as well?

Answer: This is a tough question to answer without knowing your respective credit scores. However, since you mention you’re both new to credit cards, let’s assume you have limited credit histories and thus credit scores that fall on the lower end of the spectrum.

If your FICO scores are 599 and below, what you should be most concerned about is finding a card that you’ll not only get approved for but will also report your monthly payments to the major Credit Bureaus. In essence

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March saw consumer credit card debt continue to fall.
While people may have continued to pay off their credit cards, March saw an overall increase in consumer credit, according to a recent report from the Federal Reserve Board.

The Fed said consumer credit increased at an annual rate of 1 percent during the third month of the year after seeing a revised 3 percent drop the month before. Overall, consumer credit increased from $2.44 trillion to $2.45 trillion.

The increase in consumer credit was led by nonrevolving credit, which posted a gain of 3.9 percent. Full Article

Students who have got a history of bad credit are not in a favourable state though it is generally true that they are comparatively in better position than any one who is carrying record of bad credit and who is not a student. Students may have had earlier loan or loans which they have not paid back the regularly. Defaulting or taking no step to pay back in proper time is never good as lenders are discouraged knowing such history. Still students loan bad credit may be secured by a student. How a student may achieve this is what has been discussed in the following lines.

Students reach to this condition as most of them like to support them when they are in the colleges or universities. Full Article