And since debt consolidation is one option that many people with debt are curious about, today we’d like to tackle this question: How does debt consolidation work?The purpose of debt consolidation is to allow people who are having trouble managing various debts to consolidate, or group, all their debts into one.For example, if you have three credit cards with interest rates of 12%, 18%, and 25%, you might be able to consolidate those three accounts into one loan with an interest rate of 10-15% – which would save you money.
The good news is that a credit review will not be part of the process, Peddicord says.If you’re up to your eyeballs in debt and can’t see a way out, the idea of moving to another country and ditching your debts may be very appealing. Relocating to a foreign country isn’t as simple as buying a plane ticket and packing your suitcase.Kathleen Peddicord, publisher of “Live and Invest Overseas”, says she’s met many people in that situation over the years. In addition to the expenses you’ll incur, such as housing, you’ll also want to secure residency in that country if you hope to remain there for a long period of time.Let’s say there’s ,000 left on your car loan, you have the cash in the bank and the car loan payment is 0 per month.0 per month on a car loan reduces your ability to purchase to the tune of more than 0,000 in loan amount.In fact, the faster you pay off your debts the more your credit score will improve.Ideally, you should come up with a budget and pay off your debts as soon as possible.Let’s look at the differences: When buying a home, and prior to attaining an accepted purchase offer, paying off debt to qualify is simply a function of learning how much more buying power is achievable by eliminating debt like credit cards, student loans or car loans.A qualified mortgage lender can run “what if” possibilities, which could become crucial in your endeavor to purchase not only the right home, but ultimately the home you can afford. Their credit card debt became overwhelming.” But while she says relocating abroad can be a successful strategy for getting out of debt (more about how to do that in a moment), she also warns that, “It’s probably not the cure-all that people think it might be.” Financial problems don’t simply disappear. Here are three pitfalls you may encounter when trying to dodge your debts in another country.Big picture, there are two main ways to establish residency in another country, and they both require income, cash or both, explains Peddicord. Show that you have a reliable source of monthly income (i.e. Here, you need to demonstrate that you have a guaranteed monthly income that meets the country’s minimum income requirement.