Why Debt Consolidation Loans?

Debt Consolidation Loan Resources

With this current hard economic time, there is a high number of people who have incurred several debts. Many debtors do turn to personal debt consolidation loan because of the fact that it can be the easiest way of repaying loans of higher interests which you had borrowed. The main purpose of debt consolidation loan is basically to reduce the burden of debts you are incurring and within some coming time, you will have eliminated what you had owed financial institutions. Even though you will remain under debt after borrowing this special type of loan, you will have relieved yourself from others that were haunting you.

You will consolidate all your loan in the name of a new lender and the good thing is that it will come with law interest. One of the attractive feature of this type of loan is the fact that you can qualify for an unsecured debt consolidation option.

The lender of this loan may not need any collateral item from you to warranty you the probability of getting it. Many debtors do opt for this way of relieving them the burden of repaying loan because by using this plan, you will have a prolonged time of repayment and of course with lower interest rate.

It is quite easy to repay a loan when the monthly installments are not huge. A person who is able to secure an unsecured debt consolidation loan will save a great deal of money. This will in turn be used in other day to day expenses that will improve the quality of your life. In most cases, when you are in dire need of a personal debt consolidation loan, you should not shy from taking it especially when the loan you are incurring is not very high. You will not have to provide any type of collateral and at the same time you will clear your loan on time.

The last but not the least when it comes to unsecured debt consolidation is that you should compare and contrast multiple lenders to increase your chances of getting an attractive one.

Loan Modification

Since the time the world economic crisis hit the American society, numerous American homeowners found themselves struggling to make their monthly mortgage payments due to the increase of their interest rate or because of the households' significant income reduction. On many instances the things went so bad that some families moved close to facing the horrifying threat of their homes running the risk of being foreclosed.

Solution is offered by President Obama's Home Affordable Modification Plan. This federal government sponsored program is intended for helping millions of homeowners to save their homes, the more so that it is being participated by the majority of lenders across the USA.

Even if the program doesn't cover all borrowers, still many of those who are able to provide proof of their income along with meeting certain other criteria do qualify for having their mortgage loan modified provided they take the necessary steps and apply for their loan modification instead of waiting in hope their situation will get settled on its own.

If you failed with making one or several scheduled monthly mortgage payments or if you feel the hardships you are experiencing are likely to make it hard for you to fulfill your mortgage repayment obligations in the near future unless the interest rate on your loan is reduced, it is a must that you do not delay with negotiating your loan modification terms with your lender based on Obama's Home Affordable Modification Plan provisions.

It is important to act promptly before it is too late. You should realize that even if you are a homeowner who has already entered the process of foreclosure, there are still chances your home could be saved at this stage too, because the foreclosure process is bound legally to be stopped for the time you are being considered for the HAMP.

If this is your first mortgage on your primary residence, which originated before 1 January 2009, and if your monthly mortgage payment also exceeds 31% of your gross monthly income, then delay no further and contact your lender as soon as possible and offer them discuss the possibility of working out an agreement on

loan modification for you. Currently the US government encourages financially the lenders who offer a loan workout to their clients. With 75 billion dollars in subsidies coming through Obama's HAMP, there is a monetary incentive for the banks to co-operate with borrowers who qualify.

Financial Documentation Checklist

You are advised to have in your disposal while talking to your loan servicer asking to consider you for loan modification under HAMP:

  1. Information about monthly gross income, including recent pay stubs, if you are the borrower who receives salary
  2. Documentation confirming income you receive from other sources, if any
  3. Your latest income tax return
  4. Information about your assets
  5. Documentation confirming any subordinate lien mortgage on your home
  6. Account balances and minimum monthly payments due on all of your credit cards
  7. Account balances and monthly payments on all other debts (say, car loan)
  8. A hardship letter explaining why your mortgage has become not what your can currently afford (for example, your expenses could have increased because of the urgent need to undergo an expensive medical treatment)
These should cover also other borrowers, if any.

Have questions? Looking for assistance? Home Loan Modification