Live mobile sex chat room Pro and cons of consolidating a student loan

You will send all future payments to this new loan servicer, so make sure you have their payment address and contact information.You'll also need to work with them to develop a new payment plan that will allow you to keep your loan in good standing, as loans rehabilitated on or after August 14, 2008, can only receive the rehabilitation opportunity once.

Consumers with too much debt, particularly revolving debt such as a credit card balance, sometimes consider credit consolidation as the answer to their financial woes.

As with any major financial decision, though, consumers need to do their research before opting for a debt consolidation loan.

All nine payments must be consecutive, on time (within 20 days of the due date), and voluntary to count toward rehabilitation.

If your wages are being garnished, you will have to make these voluntary payments in addition to the garnishment.

Rehabilitated loans are eligible for lower payment options, such as income-based repayment and extended repayment.

Not only will rehabilitation get your loans back on track, but it may also help your credit and lower your collection costs.

Before opting for a home equity loan to pay off a credit card balance, use a debt consolidation calculator to compare monthly payments.

While there are pros and cons to debt consolidation loans, the biggest concern of financial planners is that consumers with significant credit card debt may lack the discipline to pay off their cards and not use them again.

Your loan holder will initially calculate your rehab payments as 15% of your disposable income (which is your adjusted gross income minus 150% of the poverty level for your family size).

To do this, they will need information about your income, as well as the number of people in your family.

Once a debt consolidation loan has been approved and the credit card balances are paid off, those available credit card limits may be too tempting for some individuals.