Backtrack - America's in Debt
Based on the FTC:
"Having trouble paying your bills? Getting dunning updates from creditors? Are your accounts being turned over to loan companies? Are you worried about losing your home or your vehicle? "
"You're not alone. Many people face a economic crisis some time in their lives. Whether the crisis is brought on by personal or family illness, the loss of a work, or overspending, it can seem overwhelming. But often, it may be overcome. Your financial situation doesn't have to go through bad to worse. "
As the FTC stated, having debt doesn't need to be the end of the world. Consolidation, including federal loan consolidation provides person a chance for financial security- if the repayment is performed well.
Eligible Agricultural Loans
These loans are eligible with regard to federal loan consolidation:
1. Farm loans - operating financial loans are bestowed by FSA or the Farm Service Company. These loans are bestowed to farmers that are not able to acquire necessary credit to continue their livelihood.
2. Commodity marketing loans - when commodity crops are having difficulty, this loan can be used to bolster production as well as sales.
3. Ownership loans - ownership loans are bestowed to farmers that cannot acquire credit in the Farm Credit System and similar entities due to unexpected disasters and economic difficulties.
4. Farm storage loans - since the name implies, these loans can be used for the actual construction of grain storage facilities.
Eligible Business Loans
Listed here are also eligible for federal loan consolidation:
1. Small loans - can be traced back to sec. 7 from the SBA or Small Business Act.
2. Disaster loans - if a small company or an entrepreneurial outfit has experienced economic harm in an area that's been declared an area of disaster, this loan is presented. The assistance comes from the Small Business Administration.
3. Indian loans - American Indians can make an application for this loan if they are having a difficult time acquiring any type of commercial credit. This allows members of the American Indian community to interact in small businesses without being redlined by private loan companies.
4. Microloans - start-ups and other very small businesses could be started with microloans.
5. Physical disaster loans - much like disaster loans, these loans are given to businesspeople who've had experienced structural damage in disaster areas.
Managing Financial debt
According to Ernst Derek, a CPA and credit therapist from Minnesota:
"The development of a good budget plan is always the initial step to debt management. It has nothing to do with how smart one is or otherwise. It's about knowing exactly how much you can afford from month to month. Consumers should never be afraid to face the real state of the financial affairs. "
Derek continues with:
"Creditors and loan holders also needs to be your allies. They're not really enemies. They just want you to definitely repay the debt, it's that simple. ".