If you have student loans and credit card bills each month then it may be time for you to consolidate all of them. There are many reasons you should c

Student Loan and Credit Card Consolidation
By [http://ezinearticles.com/?expert=Mike_Blake]Mike Blake

If you have student loans and credit card bills each month then it may be time for you to consolidate all of them. There are many reasons you should consider consolidation and many benefits also. It may put you in a better financial situation in the long run.

Credit card bills and student loans both come with interest. No one likes to pay interest on anything because it just seems like money you are throwing in the trash. When you have two different loans and two different interest rates it can be hundreds of dollars each month that is not touching the principle balance of your loans. Consolidating credit cards and student loans gives you the opportunity to only pay interest on one loan. The money you are saving can go toward the principle or to a better lifestyle.

Consolidating student loans and credit cards is an excellent idea because you will have only one payment to worry about each month. Monthly payments are difficult to keep track of, especially if you have many different payments. You may find that your payment falls on the exact same day each month but your paycheck often falls around it, sometimes before or after. This may cause you to pay late on some or even make partial payments so you can make each monthly payment on the different accounts. When you consolidate you have one easy payment on one account. You don't have to worry about figuring out which account you have paid it is one simple payment made every month

When you consolidate student loans and credit cards into one easy monthly payment then it is considered a private loan. You may have government loans for school and personal credit cards that are not government issues. When you consolidate a government loan with any other loan it then becomes a private loan. The only setback to do a private consolidation loan with a government loan is that you lose all of the benefits that the government gives you with their student loan program like if you lose your job or become injured you may qualify for a deferred payment. If you are injured for life they won't make you pay back your loans at all. A private loan will never give you benefits like this.

When you consolidate your credit cards together with your student loans the money savings will be phenomenal. It is usually recommended if you have a high credit card debt and a lot of student loans. For example, if you have two credit cards at $250 each a month and a student loan of $400 a month, that is $900 a month. When you consolidate all three of these accounts into one easy loan and spread it across 30 years you can be looking at a low monthly payment of $200 a month. This will give you a lot of money left over in the long run.

Mike offers in-depth information on [http://www.debt-relief-today.com/debt-consolidation.html]Student Loan Consolidation and the benefits of debt consolidation. Read more about why your should consider a Credit Card Debt Consolidation Loan for more great debt consolidation related articles http://www.debt-relief-today.com

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