Millions of Americans have already been hit with increased credit card interest rates, but if your rates haven’t gone up yet, keep your eyes open; there’s probably a rate increase notice in the mail right now. It’s time to look into a debt consolidation loan.

Robert Manning, of the Washington Post, described credit cards as “yuppie food stamps;” a way of making ends meet. Right now, there are more than 700 million general purpose credit cards in use, and another 500 million retail store credit cards. Moreover, the average American household carries more than $10,000 in credit card debt. If a household happens to have credit cards at 18 percent, and makes minimum payments, it will take roughly 48 years to pay off the debts. Makes a debt consolidation loan sound sensible, right?

In the most recent Federal Reserve survey,
•    54 percent  of senior bank loan officers said they had or would soon increase interest rates on credit cards held by consumers with good credit;
•    74 percent said they had, or will, increase rates for consumers with bad credit;
•    50 percent have or will but credit card limits; and,
•    40 percent said they have or will increase fees.

In a flash of creativity, they’ve even introduced a new fee – an inactivity fee for cardholders who pay off their accounts every month, or don’t use the card at all.

With a debt consolidation loan consumers have:
•    Lower interest rates – as low as 6.99 percent with good credit
•    Fixed interest rates
•    Consistent monthly payments
•    Faster payoff with savings of thousands in interest charges.

If you’re thinking about a debt consolidation loan, consider working with America One Unsecured, a loan consulting firm. They can help you learn more about your debt management options, and help you get the best rate a debt consolidation loan.

In response to a sleepy economy and job loss or reductions in hours, more and more Americans have incurred additional debt in the past couple of years. Many consumers are now opting for debt consolidation in order to solve their debt problems, a solution that combines all of a person's debts into one single loan.

There are many financial organizations that offer debt consolidation loans, and the biggest challenge is often finding a legitimate source amidst all of the scams out there. There are easy and effective ways to avoid debt consolidation scams.

• Refuse to pay any up-front fees. Genuine companies would never charge you an up-front fee, and the fraudulent ones who do will often disappear once the fee is paid.

• Watch out for hidden fees. The bad guys will charge hidden fees in the middle of the term.

• Refuse to reveal confidential details. You must know that the counselors of the financial organization you're dealing with will only ask you to give the details of your creditors. You will have to provide your loan details as well. But if a company asks for your Social Security number, be very careful.

• Do your homework. You should find out if a company is legitimate or not. When you have picked a company, check with your State Attorney's Office, the Better Business Bureau and the Federal Trade Commission. Check to see if there are any complaints registered against the company.

• Don't agree to a verbal agreement. You should always ask for a written agreement Verbal agreements are not legally binding. You should be sure to read the terms and conditions of the contract carefully. Read the fine print section carefully to be sure there are no hidden fees.

You should also ask your creditors before selecting a debt consolidation company. They will likely know who the fraudulent companies are. But some may still ask if debt consolidation is for them. One of the chief signs that it is right for you is that you just can't seem to get ahead with your bills. If you pay your bills each month and still can't seem to pay down your debt, it may be time to consider loan consolidation.

But before you sign on the dotted line, do your homework. It will pay off – with interest.

Personal loans can actually improve your credit score

The conventional wisdom says that to improve your credit score, you have to chip away at all your debt, one account at a time, until everything is paid off. In many cases, that’s sound and solid advice. However, there are some scenarios in which taking out loans—personal loans—improves credit scores, saves thousands of dollars and allows consumers to reach their goals much faster.

Several factors influence credit scores:

• Debt to income ratio

• Credit utilization

• Credit diversity

• Prompt debt payments

Personal loans improve credit scores because they often have lower interest rates than store credit cards and many bank issued credit card accounts, so it makes sense to consolidate credit card debt with personal loans. The lower the interest rates, the faster the principle is paid off, and the faster the borrower is debt free. Though income levels may be static, more quickly paying off debts with personal loans improves credit scores by improving the debt to income ratio.

Credit utilization is the amount of available credit in use. Taking out personal loans improves credit scores when they are used to pay off other debts, thereby increasing the amount of available credit as the loan is paid off IF the credit card accounts are left open but not used.

Personal loans are an asset for younger borrowers trying to improve credit scores. Many young adults have either no credit or they have only high-interest credit cards. Adding personal loans to their credit reports improves their credit scores by introducing another—or a first—type of credit.

Finally, making debt payments is essential. Lower interest rates and fixed interest rates results in lower monthly payments. Personal loans improve credit scores because the lower monthly payments allow for more flexibility in household budgets, reducing the likelihood of making late payments because of unexpected expenses or a lower income.

Despite a tradition of accuracy and wisdom, conventional wisdom isn’t always wise and should be evaluated carefully according to each unique financial scenario. That’s when it makes sense to consult with an expert. America One Unsecured is one of the largest loan-consulting firms in the country. They have helped their clients secure hundreds of millions of dollars in personal and small business loans since 1999.

Personal loans: Time for a little spring cleaning

Long, gray winters with record-setting cold and snowfalls make springtime more than ever a season of renewal. Like kids, we’re looking forward to summer vacation. We’re ready to start fresh with the time-honored tradition of spring cleaning. But, if the gray clouds of winter still seem to be hanging over your financial landscape, personal loans for debt consolidation can provide a sort of spring cleaning, and get you headed out on that much deserved summer vacation.

The many advantages of personal loans over credit card debts mean you get relief a lot faster.
Lower interest rates mean lower monthly payments and more of your payment goes toward the principal.
Lower monthly payments mean you have more money to put toward other debts.
Fixed interest rates mean no sudden rate hikes that make it impossible to pay off your debts.
Paying off your credit cards lowers your credit utilization rate and increases your credit score; your higher credit score means you’ll qualify for more favorable rates and terms.

Personal loans have many other advantages besides all the money you’ll save by consolidating your debt. For instance, unsecured personal loans don’t require collateral, so you don’t have to own a house, have a clear title on your car, or have investments to put up as security. Moreover, personal loans offer a flexibility not found in any other type of loan; you decide how you want to use the money. Unlike an auto loan or a mortgage, borrowers can use their personal loans any way they.

So, if you’re still hunkering down with your head beneath the covers, consider using personal loans for a little financial spring cleaning. Before you know it, you’ll be planning a vacation instead of just dreaming of one.

America One Unsecured is one of the largest loan-consulting firms in the country. They have helped their clients secure hundreds of millions of dollars in personal and small business loans since 1999. Click here to learn more about America One Unsecured and find out how they can help you find the money you need and get the best terms and interest rates.

Personal Loan Rates a Better Bargain for Debt Consolidation

It’s more than a little ironic that most people borrow money to cover expenses they can’t afford, yet some loans and credit cards come with interest rates so high that they’re unaffordable. That used to be the case with personal loan rates, but right now they’re a lot less expensive than many credit cards.

Today, the average interest rate is down to 12% for unsecured personal loans with terms ranging from 12 to 60 months, but there are a lot of banks offering personal loan rates lower than that.

Compared to average credit card rates of 11.68%, the average personal loan rates are slightly higher, but because revolving credit card accounts have variable interest rates compared to the fixed rates of personal loans, personal loans are the better bargain. And, of course, 33% of credit card issuers have raised their interest rates this year, many as high as 29.99% or more.

To get some idea of how much money those lower personal loan rates can save when used for debt consolidation, take a look at these figures:

• Today the average household carries $8,924 in total credit card debt. If that household is among the millions whose interest rates have been increased to 29.99%, the five-year, payoff will cost $288.67 per month.
• In comparison, if the credit card debt were paid off with the average personal loan rate of 12%, in a five-year payment period the monthly cost would be only $201.23—a savings of $87.44 per month or $5,246.40 over the life of the loan.
• The average interest rate for balance transfer cards is now 14.54%, so if the card holders in the average household consider that route for paying off high interest cards, they can expect to pay $210.15 monthly, in addition to the balance transfer fee that is typically 3%.
• So again, using the credit card debt of an average family, the balance transfer fee will be an additional $267.72.
• The total savings of using a personal loan to pay off credit card debt compared shifting it to a balance transfer card is $802.92.

When you do the math, personal loan rates are by far the better bargain.