Monday, March 30, 2015

I Chose A Road

I consolidated! Let me say that again: I CONSOLIDATED! I was actually approved for a private student loan consolidation :) I cannot explain to you the joy and relief the words, “you were approved” brought to my soul; I cried a happy tear or two at my desk then texted my mom and a few close friends about the news. It took 6 years to get this. Although I have a decent stretch of road to travel in front of me, I am hoping that the ride on the latter half of this journey is a bit smoother.
The facts: I decided to go with Charter One/Citizens Bank. The reason being: interest rates. The only other real option in my mind was Wells Fargo; however, Charter One’s interest rates were approximately one point lower on both the fixed and variable options. Also of note, I have been denied consolidation from Wells Fargo on more than one occasion so I figured I would try Charter One first to take advantage of the lower rates and if denied, try my luck over at Wells Fargo again. Thankfully, Charter One gave me an approval.
The only way I would accept a refinance would be a). approval with no co-signer b). a low interest rate and c). no early re-payment penalty. Based on my debt-to-income ratio (which is finally no longer inverted) I was approved to refinance without a co-signer. Based on my credit score, which they reported was 809 (they source EQUIFAX), I was offered their lowest interest rate. The only thing left for me to decide was the term length as well as a fixed or variable interest rate. This was a tough decision because as I stated in the previous entry, I was torn as to whether or not to embark on this refinance journey if I was only going to be reducing my interest rate by a point or two. Before I tell you which option I picked, allow me to lay out the options I was given to choose from:
Term, Type of Interest Rate, Interest Rate, Monthly Payment, Total Amount to be Paid:
20 Years, Fixed, 5.44%, $299, $71,919.13
15 Years, Fixed, 5.19%, $349, $62,831.51
10 Years, Fixed, 5.04%, $460, $55,314.88
5 Years, Fixed, 4.99%, $813, $48,835.84
20 Years, Variable, 2.82%, $239, $57,438.50
15 Years, Variable, 2.67%, $294, $53,004.60
10 Years, Variable, 2.62%, $411, $49,375.23
5 Years, Variable, 2.57%, $766, $46,019.30
 I went with the 20 year/variable term for merely monthly payment/total amount to be paid reasons. Although the cap is astronomical, there is a cap on the variable interest, but it is so huge (like upwards of 25(ish)%) that should it ever get that high, I am in some deep water. All of my previous Sallie Mae/Navient loans had variable interest rates, and they never changed. I know that Dave Ramsey states to not choose a variable interest rate when a fixed is offered. However, I did not know why he stated that as it seemed pretty clear to me that if I stuck to repaying the amount as fast as I could, I would save myself money in the long run. Literally the day after I signed everything, I ran across one of his broadcasts on YouTube (I am the nerd that listens to these on my lunch breaks) where he stated his reasoning for always choosing fixed is to eliminate any and all risk associated with your finances. Risk basically equals stupidity. In my case, I was too late to back out and choose a fixed rate - here's to hoping I stay crazy committed to paying this baby off. I may look back on this paragraph 2 years from now and hate myself for it, but for right now, in this moment, I feel okay about my decision.
What this means for me: To begin, I did indeed get the remaining 6K paid off from the original 14K I talked about in my last entry; this put me right where I imagined, financing approximately 43K through Charter One. This does significantly reduce the amount of interest I will be paying each month, but in no way is this a cop-out in regards to my repayment responsibility. I will still follow Dave’s advice to the best of my ability and get this debt gone as fast as I possibly can. I have sacrificed my money, time and freedom for far too long and am more than fed up with this burden; I believe my annoyance and sacrifices in combination with the fear of a rising interest rate will continue to fuel my inner crazy to keep putting every extra penny I come across towards this loan.

Although I am out from under the shadows of the MONSTER that is Sallie Mae, I am not going to rest. I am going to look at this consolidation as a ‘job well done so far’ high-five and KEEP RUNNING. I hope you all will continue to follow me on this road to debt freedom and I pray that soon, we will all be able to hang up our running shoes, take a seat, and have a glass of sweet lemonade together. Happy spring, people!

Friday, March 27, 2015

Follow The Easy Steps That Helps You To Pick Up The Right Financial Deal Of Loans For People On Benefits!

People who are surviving on the benefits of DSS (Department Of Social Security) often find tough to meet their ends. Now, you simply stop worrying if you are physically or mentally challenged and unable to earn the sufficient income to fulfill your financial needs and desires. Loans For People On Benefits are available that are meant to offer easy cash to the people who are living on DSS benefits. This is one of the effective financial service that let you arrange quick finances to meet the pending needs and unexpected expenses without any delays and disturbance.

As the name implies, these finances are specialized for the people who are living on certain disability benefits and looking for the swift financial support. This is a short tenure and effective financial option that do not ask for any security to pledge. Funds can be offered on the basis of the current financial affordability of the loan borrower. So, if you are disabled and need quick financial help, here are the helpful steps that help you to find the right and feasible financial option of loans for people on benefits.

Read The Simple Steps To Pick The Appropriate Option:
  • In order to grab the affordable financial deal of these financial services, it is important to make sure that your credit report is free from the errors. Most of the lenders prefer to offer the finances to the borrowers at low rates who are possessing good credit ratings. So, applicants have the higher chances of enjoying the easy approval with high credit scores.
  • Shopping for the financial deal at online lending market helps you to choose the most pocket-friendly financial service of all. Always compare the multiple quotes to end up with the lucrative and reliable lender offering this financial deal.
  • Also, knowing the eligibility criteria carefully is an important step as it let you check if you can easily get the approval of this deal or not.
  • Once you find the reputed and affordable lender offering the financial service according to your requirement, visit the site and fill up the application form correctly.
  • Always read the fine print of the loan in a careful way to check the several important details about the loan deal such as loan amount, interest rates, terms etc.
  • When you e-sign the loan document, you may get the approval within few possible hours and funds will directly send to the checking account without any delays.