Student Loan Consolidation Part II

Student Loan Consolidation Part II



Student loan consolidation is​ excellent for for some people. Spot the​ hidden trap that could ruin your life. . . a​ clever animal can steal from a​ trap without being caught!* Part I ​ Don't get into debt. Ways to​ avoid it.
* Part II This article
* Part III Idea beats student loan consolidation and creates a​ winning mindset.
Part II
Imagine two people
Each has a​ student loan consolidation debt of​ $100 000. the​ born loser will soon have borrowed more. the​ investor uses the​ student loan consolidation as​ a​ springboard to​ become a​ millionaire.
Whats different between them? the​ mindset,​ and only the​ mindset. Get the​ right mindset.
The big trap
Have you​ a​ strong willpower? Will you​ go on​ a​ spending spree and owe $5000 on​ each card tomorrow? a​ student loan consolidation is​ not for you. Read Part III of​ this article.
Have you​ the​ will power to​ master your finances? Combine student loan consolidation with Part III.
What is​ Student Loan Consolidation?
You transfer all your existing loans to​ one low interest account.
Whats in​ student loan consolidation for you?
* if​ you​ have Stafford loans in​ the​ USA,​ you’ll have a​ grace period of​ six months after graduation to​ take out a​ student loan consolidation.
* Interest rates are lower
* Easier to​ remember payment dates with one loan
* Improved credit rating
Credit cards might charge 20% interest. Wouldn't a​ student loan consolidation at​ 5% be better?
Look for extra discounts on​ student loan consolidation during the​ grace period. Do you​ get an extra discount after 2 years of​ prompt payments.
Do your homework properly. Were you​ only paying 3% fixed interest on​ your Stafford loans and interest rates have gone up to​ 8% variable rate on​ your student loan consolidation? How high could the​ rates go? if​ you​ get a​ fixed rate student loan consolidation,​ and new student loan consolidations fall to​ 3%?
Computers calculate your credit rating. Suppose you​ took out a​ subsidized and an not subsidized Stafford loan for each of​ four years. Computers cant really think. They see that you​ have 8 long-term loans and never paid back a​ single cent. You’re obviously a​ very bad credit risk before your student loan consolidation!
After your student loan consolidation computers see that you've only 1 loan and you're making regular payments. They give you​ an excellent credit rating. Don't spoil it​ with new credit card debts.
Avoiding student loans
In part 1 you​ read about vital life skills that mean lower student loans for student loan consolidation,​ or​ even none. you​ can make your money go twice as​ far,​ which means that you'll effectively be twice as​ rich,​ and the​ IRS cant touch you​ for it.
Without these life skills,​ you'll be helpless when you​ suddenly have to​ pay for food and lodgings,​ credit card,​ car loan,​ mortgage,​ health. . . its never ending! Many students cant handle it. Part III will help you​ even if​ you​ have a​ student loan consolidation.
Have you​ decided on​ student loan consolidation?
* Check how much they will lend
* Can you​ consolidate your other debts. . . credit card and car loan?
* Will you​ need proof of​ income?
* Can you​ choose between fixed and variable interest?
* Are there prepayment penalties? Avoid them like the​ plague!
* What are the​ penalties if​ you​ default? if​ you​ are unemployed or​ lack self discipline you​ are likely to​ default.
* What other loans must you​ get mortgage,​ kids schooling?
Avoid lenders that make you​ start repayments of​ your student loan consolidation the​ day after the​ grace period. Check for special incentives. a​ 1% discount after 2 years regular payments may not sound like much,​ but it​ adds up over time.
Negotiate. Lenders are eager to​ lend you​ money,​ however much they bluff. They are legally allowed to​ lend 35 times as​ much money as​ they have,​ and they make no profit until they lend it.
No startup costs may be good,​ but low interest rates and absence of​ prepayment penalties for your student loan consolidation are better.
Whats in​ Part III
A better alternative to​ student loan consolidation?
* Build self discipline.
* How will interest rates for student loan consolidation change next 20 years? Dont know? Then student loan consolidation might not be the​ best bargain.
* You’ll be in​ control. . . not at​ the​ mercy of​ student loan consolidation providers.
Don't be a​ loan addict all your life. The​ ideas in part III were used by an Australian to​ become a​ millionaire.




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