Debt consolidation is what people do when their bills become more than they can manage. This could be caused by a number of different things. Death in the family, divorce, loss of income, injury to the breadwinner of the family, excessive spending and more. Many people find themselves in this situation each year so don't get down on yourself if you have financial issues of your own.
The biggest reason for consolidating debt is to make your monthly payments more manageable and to avoid bankruptcy proceedings. You may be able to get a debt consolidation loan and combine all of your debts into one manageable payment each month. It's usually helpful if you have some type of asset, such as real estate, for collateral. Most financial institutions
won't have much of an issue with giving you a consolidation loan as long as you have property that exceeds the amount of what you wish to borrow.
You can also get a debt consolidation loan without owning real estate. There are companies that specialize in these types of consolidation loans, other than traditional banks. The only potential drawback with these financial institutions is that you must be extremely careful who you choose to deal with. Make certain to read the contract thoroughly before signing anything. Some people have discovered hidden fees and clauses within these consolidation loan contracts that have ended up costing them huge sums of money over time. There is a good chance that you may pay higher interest from one of these companies than you would from a traditional bank.
Debt consolidation doesn't have to be a bad thing. The main reason behind consolidating your finances is to avoid ruining them for the next several years. You just need to be aware that everyone that you do business with may not have your best interests at heart so be very careful and do your research before signing on the dotted line for any debt consolidation loan.
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How much gas does a kohler 5ecd generator burn
By: sherrons3@aol.com | 04-08-2008
how much gas does a kohler 5ecd generator burn
Mortgage
By: mirindajackson | 04-08-2008
Got a question about personal finance? Type your question here...
I have an upside down mortgage. Is it possible to refinance with my providing up front money?
Only income is S. S. How to minimize reduction of Savings
By: LRB | 04-08-2008
Retired w/only $850.000 Social Security, and living bascis@ $1,200.00 monthly. I am down to $70,000 in the bank, own no home and drive a 13 year old car. How can I stop the fear of outliving my Nest Egg? I cannot live off bank interest..and fear stocks.
How much income taxes do they take out if you make ...
By: Mango | 04-08-2008
how much income taxes do they take out if you make 1000.00 dollars. Would it be less if you make 2000.00 dollars.
Future mortgage after foreclosure and bankruptcy in FL
By: FloridaRELady | 04-08-2008
I am a single professional middle aged lady in Florida in the midst of a bankruptcy due to two properties being foreclosed on. Had great credit and no credit card debt, but having to face facts and get out of a situation that is just getting worse. I can rent cheaper than own, my income (real estate related) has dropped substantially, and now have bad credit.
I already lost the 1st property (TH didn't sell, auctioned) and the $96,000 cash down payment on my primary (2nd property) and equity of last 3 years has just evaporated. I am upside down with the remaining 80% loan balance higher than the current market value. No buyers and difficult lender so couldn't short sale, tired of fighting the war. I am afraid my years of hard work are totally wiped out by what has happened, and unfortunately all my money was tied up in real estate, that was my retirement. I am broke and have to start all over. Will I be able to get a mortgage in the future? What will be my options if my credit is good after the bankruptcy? Any advice?
GMAC not honoring legal aggrement
By: Frank | 04-08-2008
Hi David.
I refinanced the mortgage on my Hawaii home in February 2007 with SBMC through LEI in California. It was subsequently bought by GMAC. The mortgage contained a soft-prepay, whereby there was NO prepayment penalty if I eventually sold in an arms-length transaction (the buyer was not a relative or business associate). I even have a signed addendum to that effect as part of my closing documents package. I am now selling my home in an arms-length deal to a couple in New York, and GMAC is stating that they do not feel they have to honor the no-prepayment addendumand want a $19K pre-pay penalty tacked on. I and my title company have made over 30 calls to GMAC over the past two months to clear this up, but all we seem to get is incompetance, stone-walling and buck-passing. I have contacted a real estate attorney who insists that GMAC has no legal leg to stand on in refusing to honor by pre-payment addendum and would be subject to paying triple damages and my attorney fees should I bring this matter to court. What is your recommendation for my next step?
Thank you.
Frank
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