Below is a guest post by Robin Williams.

A debt consolidation loan can combine your multiple debts into one loan, help you save money and handle your finances better.

It is quite easy to fall into a debt trap but it is always difficult to dig yourself out of it. If you have piled up a huge amount of high-interest debts and you’re finding it difficult to keep up with your monthly debt payments, one solution to lower them and get out of debt is a debt consolidation loan.

Why A Debt Consolidation Loan Is Beneficial for You

The idea behind a debt consolidation loan is simple. You are acquiring a new loan at a reduced rate than your present debts that frequently carry higher rates charged by retailers and credit card companies. Subsequently, you utilize the money to repay your existing debts. This leaves you with just one monthly payment rather than multiple payments. As the new loan is available at a reduced rate, you would also enjoy a reduced payment and it would be less than the aggregate of your earlier payments. This indicates that you can get out of debt faster.

An instance of how a debt consolidation loan works:

• You are obliged to repay $4,000 for a store credit card that has an interest rate of 17.5% and monthly payment for this is $80.
• Your bank credit card has an outstanding balance of $5,000 at an interest rate of 18.9% and monthly payment for this is $100.
• You have a car loan of $15,000 of which $11,632 is outstanding at an interest rate of 6.97% and monthly payment for this is $359.
• Your overall debt amount (not considering your mortgage) is $20,632 and your overall monthly debt payment is $539.
• At this payment level, you’re not paying down your debts rapidly. To make things simpler, you obtain a 60-month home equity loan for the same amount ($20,632) at an interest rate of 7%. Your new monthly payment becomes $409.    
• You can utilize this loan to repay your other creditors. With the considerably reduced interest rate, your new monthly payment amount is lower than your previous one by $130. Furthermore, your debt would be repaid in five years and the overall amount of interest payable by you is $3,880. This is less by $5,541 than what you would have paid for your original loans.

Utilizing A Line Of Credit Or Home Equity Loan

One popular form of debt consolidation loan is a line of credit or home equity loan. As the loan is guaranteed by your home equity, the lender can offer you a cheaper interest rate. The loan amount you can avail is dependent on the amount of equity you have. Usually, lenders would offer you an amount which is equivalent to 80% of your home equity.

The interest payable for a home equity loan might be tax deductible and this successfully lowers the loan costs. You can discuss about this with a tax consultant. Nevertheless, keep in mind that home equity loans require your home as collateral and in case of a default, you have the risk of losing your home.

Utilizing A Personal Loan

For consolidating your debts, lenders also provide personal loans. For this type of financing, it is hard to obtain an interest rate that is sufficient to better your condition, particularly if your credit score is less than adequate. If it is an unsecured personal loan, the interest rate would be more than a home equity loan. One technique to obtain improved terms and conditions is to have a friend or family member as a co-signer, assuring repayment.

Compare Loan Offers

Be cautious prior to signing the dotted line. For effectively lowering your debt, a debt consolidation loan must have an interest rate that is substantially lower than your existing rates. You should also know that your payments might be reduced by extending the repayment term but at the same time, this can result in increased interest cost. Verify if there are any commissions or additional charges along with needless costs like credit insurance.               

Rectify Your Spending Habits

It is essential to keep in mind that a debt consolidation loan would only be useful if you prevent accumulating new debt or else, you would land up in similar types of problems that you had in the past. A debt consolidation loan can help you get back on track. However, it would work if you select the correct loan and rectify your spending habits to stop piling up new debt.

Thanks to JohnChow.com I will be attending the Affiliate Summit Convention in New York City on August 9, 2009 to August 11, 2009. 

To my pleasant surprise I won a Gold Pass to the conference thanks to a contest that John Chow had on his Blog.

Affiliate Summit is the largest affiliate convention in the U.S.  It was founded in 2003 to provide educational sessions and provide a productive networking environment for affiliate marketers.  Affiliate Marketing is something I also do with some moderate successes but many failures.

John Chow is a famous blogger in the blogging world who earns $40,000 per month from his Blog, which is phenomenal.  John blogs about how to make money online and he was one of the first guys to really turn Blogging into a very profitable business.  I have learned techniques from reading his blog and free e-book which has allowed me to make additional income online.

Last July 13, John had a contest to win one of ten Gold Passes, worth $399 each, to give away to 10 lucky readers of his Blog.  Winners would also be able to join John Chow and Market Leverage (an affiliate marketing company) for free pizza.  I jumped at the opportunity.

To enter, all I had to do was to explain in the post comments why I should be awarded a Gold Pass. Too bad John didn’t throw in an airplane ticket and pay for hotel accommodations.  After all, he’s pulling $40,000 per month, not to mention his other very lucrative Internet businesses.   Hey but who’s complaining!

Below is my the comment I left on John’s Blog post as to why I should win.

Related Articles:

• How I Made $125K in Commission via Affiliate Marketing
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One thing I’ve learned over the years is that it never hurts to ask.  I’ve had job offers in the past and have always gone back and ask for more money and vacation time.  I’ve always gotten something by asking; either more money or vacation time or both.  

Years ago after being offered a job, I told the recruiter to go back and ask for more money and an extra week vacation.  He laughed at me and told me most likely the company wouldn’t offer any more money or the additional vacation.  I told me to ask because it wouldn’t hurt anything.  The worst thing that can happen is that they say no.  He did and they gave more money and the extra week vacation to my recruiter’s surprise.

When I was a single young man on the prowl, I would get very upset at myself for not asking a woman for her phone number.  I would meet an attractive woman, think about asking for the phone number, but then decide not to because I didn’t think she would give it me for whatever reason.  The problem is I would always then wonder if I should have asked.  I then realized I would rather ask and be shot down than not ask at all which would cause me to wonder what would have happened.  I soon learned that it’s best to try and fail, than not try at all.  Taking this new approach proved my gut feel was right most of the time where I wouldn’t get the phone number, but every once in awhile I’d get a surprise where I would get the phone number. 

The reason why I thought of writing this post is because my home modem has been acting funny lately and causing a lot of noise on my phone line.  I called AT&T to get some help.  The representative told me it’s either my modem or the DSL filter on the phone lines.  I told him I swapped the modem filter with a filter that wasn’t being used and the line was still noisy.  He recommended changing the modem; however, I’d have to purchase one for $40.  I told him I’ve been a customer for a long time and I would like a free modem.  He stated he couldn’t give me a free modem.  I then asked to speak to his supervisor.  He then stated I’d have to speak to Customer Relations.   I said Ok!

He transferred me to the Customer Relations representative and I explained the problem.  She immediately said, “Mr. Birmingham, we’ll overnight a new modem to you at no cost!”  It was that simple.  It just never hurts to ask.

Below are the best 12 Month CDs as of 7/15/2009.

*Rate applies to sixteen month CDs.

According to a recent study conducted in Australia, taller men make more money than shorter men.  The study suggests that people perceive taller men to be more intelligent and powerful.

The study found that men who are 6 foot tall had annual incomes almost $1,000 more than men 2 inches shorter.

According to Arianne Cohen, author of the book “The Tall Book”, tall people make about $789 more per inch per year.  There is nothing differentiating these people except their height.  

So if you are tall you are in luck, if you are short, sorry!

Source: The Economic Times

Recently I was watching a “Who Done it” on NBC’s Dateline.  The show was about 2 hikers who befriended a stranger.  After a night of socializing with the stranger, for no reason the stranger tried to kill the hikers.  Fortunately, the hikers managed to escape but with very serious life threatening injuries. The injured men ended up spending a few days in the hospital after surgery and both had bullets permanently left in their bodies.

Here’s the kicker, both hikers had no medical insurance and as a result were now liable for tens of thousands of dollars.  One hiker owed almost $80,000 in medical bills.  I thought that was so unfair.  These gentlemen were almost killed and as a result now had medical bills that may bankrupt them.  

The shooter if he had lived (he died after a police pursuit where his car crashed and he died of his injuries), wouldn’t have to pay anything and would have been provided free shelter, food, medical care, and clothing (although in prison).  The 2 hikers now were stuck with huge medical bills and also I’m certain will require medical care for their injuries for the rest of their lives.

This is another example of how screwed up our healthcare system is.  If you get injured as a result of a crime or even an accident through no fault of your own, you will be liable for the medical bills, especially if the other party that caused the injury have no insurance or money to pay you.

Bank of the Sierra is currently offering a 4.51% APY on balances up to $25,000 and 1.01% APY of balances above $25,000 for a Sierra Reward Checking account.  However, there are monthly qualifications that if not met, you will only earn 0.12% APY.  

The monthly qualifications required are a minimum of 12 Sierra Check Card purchases per month, minimum 1 direct deposit or automatic payment from your account each month, make at least one bill payment online, must receive eStatements and your account must be opened online.

The following are features of the account:

• Earn 4.51% APY on balances up to $25,000
• Earn 1.01% APY on balances above $25,000
• If monthly qualifications are not met, you still earn .12% APY
• Reimburses up to $25.00 in ATM fees nationwide per statement cycle
• Free eStatement every month
• Free Sierra Bill Pay
• Free Sierra Check Card
• No monthly service charge
• Overdraft protection available with a savings account or apply for a line or credit.
• Only $50 to open

For more information visit BankoftheSierra.com.