Personal Finance - Part 1 of 12
However if you choose to use a financial professional then you just need to make some enquiries to ascertain their track record. Don't assume that because they are a professional that they know everything about each different aspect of investing. Whichever type of investment you are considering make sure they have a proven track record in that particular field.
Just telling them that they will make more money in the long run won't cut it. You need to present a well thought out case as to why it makes sense to consolidate your existing loans. You need to sit down and work out a plan before you even think of contacting them. In that plan you need to be able to tell them how your bad credit came about.
Of course if you are consolidating bills from credit cards you will probably find that the lower interest rate will make a huge saving in both the monthly repayment and the overall cost of the loan. Just don't make assumption though. Check it out carefully. It's your cash that we are talking about here and no one will take care of it better than you.
The typical advantage of going ahead with a CD with a credit union is that you get an interest rate that is significantly higher than what a bank can provide you with. It is not at all a bad idea to invest in Certificates of Deposit; in fact, it is a much assured manner of piling up on considerable amount of savings.
It acts as a kind of security for the bank as well as it helps you to really save that amount of money, adding more meaning to the concept of savings accounts. But you have to see if you can really afford to keep this minimum deposit with the bank because if your total deposited amount goes less than this, you will have to pay an additional charge.
Before you apply for a loan for debt consolidation you need to sit down and figure what you're going to say to them. First up, make sure you only tell them the truth. Do you know one of the biggest reasons why people get turned down for debt consolidation? Poor credit isn't the answer! It's because they lied on their application form.