Smart Ways to Use Debt Consolidation Loans

When you got balances to be cleared off on different credit cards, then paying them off would be quite challenging and long process. It’s quite hard managing the payment of a debt which is split into different accounts. It would have been a lot easier if you were able to pay just one bill which takes care of all the credit card debt.  One could easily consolidate their debts by combining the debt payments which would, in turn, helps in paying off the debt quickly. Below mentioned are different ways one can consolidate their debt.

Home equity loan- You could borrow the home equity loan against the equity of your house and use this loan to pay off the credit card debt. This loan is a closed-ended account where it has to be repaid over a particular time period.   These loans have lower rates of interest and got higher limits of borrowing when compared to other kinds of loans. You can learn more about loan types here

Debt consolidation loan- These loans are used for the sole purpose to pay all the debts and generally offered by major banks. There are even various institutions which offer these loans, but the interest rate charged by them would be higher. Hence do a thorough research about the interest rates offered by the banks and institutions and choose the one which offers a lower rate.

Borrow from retirement- This is the last resort one should opt to consolidate the debt. Most of the retirement plans allow you to borrow against the fund, but there are few terms and conditions one needs to follow.  Hence understand all the terms set and think hard before you choose this option.

Borrow from a life insurance policy- If you need to choose between bankruptcy or life insurance then borrowing from the insurance would be the best choice. You can borrow up to the cash value of the loan.


Everything You Need to Know About the Penalty for Internet Scams

Internet scams can be of various types. They can be fakes that make people believe that they are the originals or there might be false claims that lure people to deposit money or furnish information that can be misused. Here are the most popular types of internet scams which are penalized by law-

Prize claims

You might have noticed several ads flashing across your screen prompting that you have a prize to claim. When you click the link it might put your device at risk or it might turn out to be a site that steals your personal information.

Phishing emails

Extracting personal information can happen in various ways. You might receive plenty of emails that look genuine but then end up gathering all your personal information.

Fake jobs

Job offers to look close to the original ones are not uncommon. There are many that ask you to deposit a small sum to join the offer and promise a large income. Such claims end up looting people’s money.

Financial scams

Financial scams can also be of various types. The most common one is the frequent emails and calls you might receive about different types of loans. Most of the licensed loan lenders do not practice cold calling. The fake calls might simply steal your personal information or get you caught in a scheme with too many hidden terms and conditions.


There are federal and state laws that strictly punish internet scams like the ones mentioned above. Based on the intensity of the problem and the sensitivity of the information being collected the actual punishments might vary. But when you come across any such scams make sure that your report them. When a number of people report a scam it would easily get to the respective authorities and help them prevent such instances in the future.

Help with Understanding a Trust Deed in Scotland

In Scotland, people who are indebted can get help through a Trust Deed. A trust deed is an agreement upon assets of the indebted person to which he agrees to be transferred to a trustee but the benefit from the asset or merchandise is to be yielded by the creditor for the time period of the trust deed. This trust deed is for the mutual benefit of the creditor and indebted. On one side it protects the right of the indebted person allowing him to pay the debt while being protected from any law action against them.

Trust deed is a legal agreement in Scotland which lasts for 4 years. For the duration of the trust deed, the indebted person is protected from the atrocities of the creditor in form of psychological, financial and legal actions. This trust deed is only for the residents of Scotland who have gained residency of more than 6 months in the country.

The financial benefit provided by a trust deed is that it prevents multiple payments around a month. The indebted person has to pay off the debt in once monthly payment. Another benefit of knowing of what is a trust deed is that the house of the debtor is saved from legal occupation by the creditor if he fails to pay the debt.

This protection is conditioned by the fact that the indebted person must abide by the terms written in the trust deed and comply with the rules and regulations. In some cases, getting involved in a trust deed can have social and financial consequences, for example, the indebted person may lose or jeopardize his job if he is employ of a legal firm or financial company.

In the situation, the indebted person fails to abide by the terms of the trust deed, there may be dire consequences like bankruptcy.…