Alamo Associates, Colony Associates and White Mountain Partners have been flooding consumers with debt consolidation offers with low interest rates. Many people choose to consolidate their various credit card loans and debts by taking out one lump sum loan. This is a dream come true for affected persons since they can successfully eliminate their high-interest credit card debts. The main reasoning behind debt consolidation is that you will be able to go from making multiple payments to different credit card companies to just one loan providing agency with a fully secured annual percentage rate (APR).
The end purpose is to save money on your interest payments so that you will be able to get rid of your debt. While this is an excellent idea in theory, a lot can go wrong if you do not take care of the basic issues that led you into debt in the first place.
Think of debt consolidation as the financial version of liposuction. While it is possible to lose weight in the short term, that does not mean it won’t creep right back if you continue to follow the same eating habits. In both cases, it is only a significant lifestyle change that can make a qualitative and quantitative difference.
Using Debt Consolidation Properly
Yes, debt consolidation is a good opportunity for people struggling with multiple very high-interest debts that they can’t seem to pay off. But even if you successfully get rid of all your debt, it will simply pile up all over again if you continue to spend in the same vein. Without a comprehensive overhaul of your whole lifestyle as well as your spending patterns, you will inevitably find yourself in the same situation over and over again i.e. consolidation your loans by taking on more loans.
You can use this strategy in the following situations:
- You have multiple medical bills that you need to consolidate urgently (here a debt consolidation strategy can give you the time required to pay them all off).
- You have far too many bills coming in on a monthly basis and you would like to consolidate them all, till you are left with only one bill every month
- You have an excellent credit rating, so you will be able to qualify for the best package with the lowest possible interest rate
- You have decided to start budgeting so that you will get not only get out of debt, but stay out as well
Here, it is very important to consider all the bases before opting for a debt consolidation solution. Suppose you cannot get an unsecured loan at good interest rates and under the circumstances, you might have to put up your home as collateral. This may seem like a good idea because a secured loan typically offers the very best interest rates and long term payment options. But suppose you are not able to meet your commitments and can’t make the monthly payments due to a loss of a job, illness or any other reason. It will be well within the legal rights of the lender to move in and auction off your home to recover their amount. Here, your debt consolidation strategy can inadvertently lead to the loss of your home.
The Key Issues with Debt Consolidation
There are many issues with debt consolidation that can potentially lead to negative consequences. Some of them include the following:
o Using the Loan to Increase Spending
Let us suppose a person takes a $50,000 loan to eliminate all of their high interest charging credit card debts. If this person continues to use the same credit cards in the same manner as before, they will have to face a mountain of debt once again. However, this time they will have to also pay the original debt consolidation loan as well.
Merely simplifying the repayment process will not do any good if the underlying reasons are not addressed properly. In fact, it is possible that you might end up being worse off than if you would not have taken the personal loan in the first place.
o Using Home Equity
Putting up your home equity as collateral can be a very good idea since you will be able to command very attractive interest rates and a highly affordable monthly payment schedule. However, in case of a medical emergency or poor financial judgment leading to a loss of funds, your very home will be in grave danger. In other words, if you are not able to maintain your minimum payments for a certain period of time, you can even potentially lose your house in foreclosure proceedings.
Changing Habits is the Only Surefire Solution
There is only one 100 percent surefire solution to your debt consolidation problem and that is to permanently and irrevocably change your spending patterns. We generally forget our financial limitations and start overspending which leads to high interest-based debt, but we need to solve this problem at root level to prevent repercussions.
The only way around this issue is to refrain from being spendthrift in the first place. Yes, a personal loan can be as low as 4 percent on average and there are no hidden charges or annual fees to take into consideration, but this is not a solution to the problem. Instead, it is symptomatic treatment of a more deep-seated malaise.
Making a specific budget on the first day of the month and following it to the T is the best way to ensure that you retain full control over your financial situation. It is very simple really. All you have to do is to make a highly realistic assessment of your income and expenses every month and simply ensure that the expenses don’t exceed the income—that’s it.
There is no doubt that a debt consolidation strategy can help you to pay off your debts, but this is not a one-off endeavor alone. It will need plenty of work at your end to ensure a more permanent and long term solution. Without a certain measure of fiscal discipline, the whole strategy will prove to be futile as you will have to repeat it all over again.
Nordstrom x Nike Vs NTAA (No Talk All Action)
No Talk All Action (NTAA) has become a leading global brand corporation. NTAA is involved in the business of clothing, music, movies, cosmetics, and other accessories. It is maintaining a bold and fearless environment for the people. The company came into existence in the year 2015 and it got its trademark registered in the US and Canada with USPTO and CIPO respectively. Since its arrival into the business world, NTAA has conformed to its tagline “No Talk All Action” and it has made its name by supplying excellent products to its customers.
Its attractive logo ‘N’ has been gaining the attention of the audience due to which it is enjoying huge traffic on its official website. However, a company called Nordstrom x Nike came into the business world in 2016 with a similar logo to NTAA. Many clients of NTAA pointed out the similarities between the two logos on various social media platforms.
Nordstrom x Nike provides the clothing and cosmetic products through its online platform but it has not registered its trademark with any related government authority.
Due to the use of a similar logo, Nordstrom x Nike has been adversely affecting the business of NTAA (No Talk All Action) in the market. By copying the logo design of NTAA, the company Nordstrom x Nike has been involving itself in a trademark infringement case.
The issue has been gaining the attention of customers of both the companies at a global level and they are condemning the act of trademark infringement from Nordstrom x Nike company.
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