The Three Big Mistakes of Getting a Debt Reduction Loan (and How Not to Make These Mistakes)

By Sean Payne

If you're in debt up to your eyeballs, you're probably on the telemarketers' list. They call, offering to give you a debt reduction loan. At first, this kind of loan sounds like a dream come true. After all, why wouldn't you want to lump all your smaller debts into one easy-to-pay loan with a low interest rate?

As the saying goes, there's no such thing as a free ride. This absolutely applies to getting a debt consolidation loan. These loans can be full of pitfalls that can easily get you in more trouble than you might think possible. Off the top of my head, here are the top three pitfalls that you will probably find when getting a debt reduction loan:

Trap #1: You're putting a band-aid on the symptom, not solving the problem.

You may think that you're curing the problem of being in debt, but debt reduction loans actually only treat the "symptom" of being in debt. These loans just put a band-aid on the problem, but don't address the behaviors that caused you to be in debt in the first place. And, once you've lumped all your debts into one huge loan, you'll eventually start to accumulate new debts when you, once again, spend more money than you make.

Statistically speaking, people who get loans to pay off their debts end up with the same amount of debt (if not more) in as little as two years. And remember, this is in addition to the consolidation loan that they now have to pay.

Trap #2: Transforming unsecured debts into secured debts.

Credit card debt is commonly known as "unsecured debt". What this means is that the loan is not "secured", or backed up by collateral (i.e. your home). Most debt reduction loans are "secured debt", meaning debt that is backed up by collateral. Most often, this means the house that you live in.

The main problem with this is that when you can't pay off your loan (and this is not uncommon), the creditor has the ability to foreclose on your home. On the original debt, the only thing the creditor could do was sue you in a court of law. They couldn't take your home from you.

So what you've done by getting a secured loan (AKA home equity loan) is to put your home at risk of being taken from you. Doesn't sound so smart after all, does it?

Trap #3: Trading lower interest rates for higher interest rates.

Even if you opt for an unsecured loan instead of a "high risk" secured loan, you're still going to get smacked with higher interest rates on your loan. The reason for this is that your high load of debt, along with the fact that you're having difficulties keeping up with your debt payments, makes you a credit risk. Anyone who may be willing to grant you a loan will only do it at a higher interest rate in order to make up for their additional risk.

They may use some tricky mathematics, such as a longer loan repayment term, so that they can offer you lower payments than you're currently making. What this means for you, though, is that you end up paying even more in the long term for your debts. This is something that most people who are in debt can ill afford.

So, what's the number one way to avoid these insidious traps?

You can avoid each of these traps by taking the bold step of managing your own debt. Unless you're on the brink of bankruptcy, you do have the ability to get out of debt without the assistance of some lender or credit counselor. It may take some radical changes in your lifestyle, but once you make those changes you'll be curing the behaviors that got you into debt in the first place. - 23223

About the Author:

Sean Payne has been studying personal finance and how to get out of debt for over 10 years. To get more information about how to get out of debt without a consolidation loan, check out Sean's excellent free course on paying off debt fast.

Learn About The Best Stocks To Buy Right Now

By Tom Tables

Many individuals always seek a way to find out information on stocks. Not only do they want information, but also they want to learn what to buy. Now you can find out what the best stocks to buy right now.

Although there are few people out there with the knowledge that easy money is possible with stocks, it has to do with the lack of tools that they have. Knowing the right information can help you to find the best way to make money. This is what you will learn right now.

Presently, two sites are making people a lot of money. This could be the reason why others do not want to share the secret of how they are making money with stocks. That kind of stuff tends to happen when others want to keep all of the profits for themselves and not let others in on it.

TrendsFollowingStrategies will help you to make money by their trend following indicators, by use of their automated system. The system they created has many years of research put into its development. It works so well, that they know every time that there is a change in the market. Not only that, but you will also have the advantage of knowing as well.

At no point will you be exposed to the risky kinds of investments that some other companies tend to use. With EFTs (Exchange traded funds), the chance of losing money is slim. They feel so strongly, about what they have to offer, that they back to with a guarantee for the first sixty days. So, if you are not happy in any way they will not ask why, but give all of your money back.

TodayHotStocks.com is a great place to receive some free information and tips in order to help you with your trading. If you like what they have to offer, then consider signing up for their informational newsletter, which will give you access to the best stocks to buy right now. Making money involves the right resources and nothing less. - 23223

About the Author:

Find more on best stock watchlist and stock fortunes newsletter.

Guide to the Forex Exchange Market

By Raul Smith

The enigma that's the foreign exchange market can in addition be called FX or it's fine to be alluded to as the forex. They all share the same meaning, which is the occupation of trading between various companies, banks, business organizations, in addition to government bodies that are set in many different countries. The financial market is one that is constantly changing leaving dealings necessary to be finished by banks and agents

As more and more people start to set up businesses online, many scams have evolved to rip off those people who don't know that a licensed broker needs to oversee all market transactions and do so with approval from foreign markets. Stocks, cash and monies are exchanged through these foreign exchanges and forex will need to participate when currencies are traded between one another. Imagine going on a journey to a far away country. Where is a good place to exchange your cash for the currency from the country you are visiting? This is the way forex trades, and it isn't readily available in every single bank or financial business because forex is a particularized market service.

Small business and individuals often times looking to make big money are the victims of scams when it comes to learning about the ins and outs of foreign markets. As forex is seen as how to make a quick buck or two, people don't question their participation in such an event, but if you are investing money in forex without a broker, a loss of all your money can certainly be expected.

Here are some scams to steer clear of:

Forex scams involve making trades but fake results will become evident and you'll not have an opportunity of getting your money back once you have invested it. Investing your finances with a financial firm who says they are experienced in trading in foreign markets, you will want to do some background checks to ensure they are permitted to do business in your country. Fraudulent businesses aren't allowed in the forex market, as they have defrauded investors before.

Over the past five years and along with the assistance of the internet, forex trading and the awareness of forex trading has become all the rage. Banking institutions are the top of the line for forex exchanges to occur, where a licensed forex broker is going to complete transactions and requirements you set forth. The forex broker makes commissions for every deal, and this is the normal way of the stock trade business.

Another type of scam that is prevalent in forex exchange trading is applications that will aid you in making trades. It is vital to discover information about the foreign exchanges, and in practicing so can you prepare yourself for making the most informed market trades. You will be able to lean on a piece of software that is really going to make a difference. Be sure to ask questions of your finance manager to learn more about forex trading, the FX markets and how you can avoid becoming a victim with no money left. - 23223

About the Author:

You welcome to check out: Insider's Guide To Forex Trading plus Forex Trading System Course for more information.

Do Real Estate Agents Get Paid What You Think They Should?

By Adam Moore

Real Estate Agent - How the Commission is Divided You could have dealt with lots of estate agents but did you wonder how your real estate agent gets paid? You surely know of that all of the talk about commission, percentages, costs, closing costs for example. Are broken down at closing. what are his actual earnings? The reality is that you are not the one who is paying your agent a commission. It's the approved broker pays your agent as he is the person that can get paid a commission.

It is fascinating to grasp the the bloke who toiled so hard to trade or find your place isn't getting as much as you think. Ever questioned how the money makes it to your representative? Here are some techniques :

Whether or not it is buying or selling the agent brings a client to the table, and a deal is signed between the brokerage house and the client.

The commission is then divided up between the houses, and after that the brokers decide how much to pass on to the agent who truly did the all leg work. The total experience he has in this field or in that market, the time the agent has spent with the company and the level of his productiveness decide the amount he is getting.

For instance an inexperienced representative may only get 30 percent of the cut where as a vet who brings in heaps of business, could get half or perhaps more of the proceeds.

There is another strategy too. Here the agent can get the whole commission provided he pays charges per month to the brokerage house. You can consider this a sort of a costs or a rent for using the office and using the name of the organization to back his reputation.

Some representatives find this deal extraordinarily advantageous because regardless of how much they make at the end of the month the amount they should pay remains fixed. But the members who are new to the business may not have a good client list and thus may not get the advantage of word-of-mouth. For such brand spanking new agents, the standard split is more preferable as they may not be able enough to make that fixed payment a month.

Also there are some factors that gobble the final profit made by the brokerage house and the representative. In a few cases referrals come into the picture too where the brokerage house sends a customer to you, they can try for a referral fee.

And then a certain percentage that comes out of the commission which is often paid by the vendor at closing. This is can be negotiable depending on the sort of market. Another point open to debate is the way the commission can be divided. So, as you can see, it isn't just the six per cent but a load more things that count. Your agent gets the cash only after everyone else gets the money. - 23223

About the Author:

We scoured every corner of the internet to find everything you ever wanted to know about real estate agents and firms. Here is the absolute best source we uncovered, real estate agent wildwood nj

Suggestions For Homeowners Facing Foreclosure

By Adam Whazzer

Bank owned "REO" houses are becoming more and more abundant each month. If youre an investor or a family looking to obtain a new house or investment property, Its a good deal to look at a Foreclosed property thats ended up on the roster of bank owned property which is also known as REO (Real Estate Owned) property. If you are a homeowner at risk of losing your home to this fate the acronym REO itself might turn your stomach . If you are considering the purchase of a new house then its important that you first decide whether this bank owned property will be your primary residence or an investment.

When it comes to purchasing foreclosed homes, your best starting point is going to be based on a number of factors. Either you may just want to check the listings with some local banks or through a Realtor / MLS (Multiple Listing Service). If you are a Homeowner in the struggle to retain your Home, you too should be looking to call The Bank but for a another reason, you need to get any information you can gather from them concerning the exact current status of your loan, how many months late, total amount due and listen to what options they have to offer, only so you can create a baseline to compare from. Next you should make sure you get through to the proper dept in possession of your files and make sure to document everyone you speak to along the way. Make sure to get Names, if they state they can only provide a first name than ask them to include Employee # and title. For the prospecting investor looking to buy who already has a lucid knowledge about the market and the bank owned properties that are accessible, your experience in buying foreclosed homes should allow you to navigate.

Purchasing REO bank owned properties may not be a bad idea as an investment vehicle, but it is critical to be aware of the recompense and disadvantages to these kind of investment strategies. It would be wise to consult with your financial planner before making the final decision to purchase anything. You should consider getting advice from more than just one source in order to judge base on a detailed analysis for comparison. If you and your family are fighting to keep you home then the best I can tell you is that from my experience the key to successfully saving your home from foreclosure is to maintain a High Level of Persistence, Dedication and Drive to SAVE YOUR HOME AT ALL COSTS and seek out the help of a professional, specifically Licensed Attorney in your state.

A trusted real mortgage lender or real estate agent may possibly be able to help you sort through the initial obstacles you may face. If this the first time buying a foreclosure home they may also be helpful in educating you about the course of action. Its imperative that you obtain any and all advice in these matters from professionals you have done your research on that you trust. The consequences of listening with your friend can be rigorous and long lasting. Always remember that every circumstance is different for each person when considering the purchase, and unfortunately the loss of a property when dealing with the bank. - 23223

About the Author:

Adam Whazzer has been a mortgage expert for years" Adam has offered delinquent mortgage help and new york foreclosure attorney to foreclosure victims for nearly 18 years. If you are facing foreclosure, stop by for More Info On this Subject