Improve your Overall Credit with these Helpful Tips

Improve your Overall Credit with these Helpful Tips

By: Tl Kleban

Ok, you've had a few problems getting all of your bills paid recently. You go to sleep wondering how you are going to get by and how you can repair the damage done to your credit. Hopefully, this can put your mind at ease – You're not the only one with bad credit. More than 30 million Americans have credit scores under 620 and severe enough to make getting loans and credit cards with reasonable terms near impossible.

Let's say your credit score isn't on life support like those people but you wouldn't mind improving it a little. That's fair enough since a better credit score can help you get lower interest rates on mortgages, loans, and credit cards. Next time you bring up credit score and start to feel down and disappointed with what you see, use these simple things to improve your score.

• Get a copy of your credit report - How are you supposed to repair your credit if you don't even know what it is or what to work on? Any of the major credit bureaus can help in getting a copy for yourself to look over an review.
  


• Clean up your credit report - There will be times as you are looking over your credit report and there will be wrong information. You are allowed to by law to have it removed. All further reports from then on out will include what you feel is correct and information stating your dispute over inaccuracies.
  


• Get current on delinquent accounts - Were you aware that payment history consists of 35% of your total credit score. A great and instant way to make an impact on your credit is to start paying on delinquent accounts and get current.
  


• Keep balances open on accounts - Try to hold off on closing out credit cards which are delinquent. This may have an adverse affect on your credit score. Make sure it won't before you close one out.
  


• Call your creditors - You may be a little surprised with this being on my list since they are the ones you are avoiding but try to hear them out. They can and will work with you in some circumstances. Tell them about your specific situation. Many crediting companies have temporary hardship programs available. These reduce the monthly minimum payments until you can pay more on the balance.
  


• Pay off debts - Your credit score will never improve unless you begin paying off those debts. I'm sorry to say this but you may need to sell off some of your things if you don't have the cash on hand. I know it's a sacrifice but it is worth making for some financial freedom.
  


• Be patient - Your credit didn't end up in the dumps overnight and it won't get out either. It's going to take some time. The only thing you can do is keep paying on those debts. Eventually, you'll see some improvement.

Merit Capital Advance looks at the big picture by offering a financing program that provides small businesses with fast business cash. It is the most convenient way to get a small business cash advance when you need it most. Visit Merit Capital Advance at www.meritcapitaladvance.com.

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Adjustable Rate Mortgages Offer Alternatives For Home Buyers

Adjustable Rate Mortgages Offer Alternatives For Home Buyers

by: W. Troy Swezey

When looking for a mortgage to meet your needs, consider these key questions: Is your income expected to increase in the coming years? How long do you plan to live in your new home? And, which mortgage will provide the lowest interest rate?

While 15 or 30 year fixed-rate mortgages are the most popular, and Adjustable Rate Mortgage (ARM) offers some interesting alternatives for home shoppers who plan to move again within four or five years. Although interest rates are the lowest they’ve been in 20 years, an ARM provides even lower interest rates during its introductory period.

An Adjustable Rate Mortgage is a home loan with an interest rate that fluctuations with market interest rates. Instead of paying the same rate of interest over the life of the loan, as you would with a fixed-rate mortgage, you usually pay a lower interest rate the first four or five years. Your interest rate then changes in accordance with certain rate indexes.

However, ARMS come with maximum caps on how much the interest rate can increase in a single period (usually a year) and how high the rate can go during the entire life of the loan. Usually, the overall maximum cap is six percentage points, and the annual cap is two points

About The Author

W. Troy Swezey is the author of “ADJUSTABLE RATE MORTGAGES OFFER ALTERNATIVES FOR HOME BUYERS." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

Adjustable vs Fixed Rate Mortgages

Adjustable vs Fixed Rate Mortgages

by: Max Hunter

Mortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an interest rate that changes based on pre-determined criteria, primarily tied to the federal interest rate. If the interest rates are up, then your interest rate on your loan will be higher, if the interest rates are low than the interest rate on your loan will go down.

Adjustable rate mortgages (ARM) are generally fixed interest rates for a period of time and then become adjustable. Generally speaking the introductory interest rate for an ARM loan will be lower than a fixed rate mortgage. This is done in order to lower initial payments and allow people to take out larger mortgages, or give them smaller payments for the introductory period. This is attractive to people who may know that their income will be increasing over that period of time.

Whether or not to choose an ARM or a fixed rate mortgage has been debated for as long as there have been ARMs. Though people feel strongly in both camps, simple mathematics can assist you in determining which mortgage is best for you and your personality. Your personality? Yes. Some people are not comfortable with any uncertainty in their lives. The idea of having an uncertain mortgage payment in the future may cause them more stress than the money they are saving is worth. Therefore, factor your own comfort level into the equation.

Generally speaking, ARMs are 2, 3 or 5 years, though they can be longer or shorter. At the end of that period your interest rate will become variable unless you sell your home or refinance. If you think that the likelihood of your selling or refinancing within the period of the ARM is strong, than the lower interest rates of the ARM loan will be of great benefit to you. If you think it is unlikely that you will sell or refinance within that period, then you may not benefit from an ARM.

Bob and Robyn are a young married couple just starting out. Bob is in advertising sales and Robyn is a teacher. Bob is fairly confident that his income will continue to increase over the next several years as he works his way up to becoming an account executive. Robyn's income is more predictable and is on an upward trend. Being a young couple they do not have the finances for large mortgage payments.

Bob and Robyn are presented with two mortgage proposals for their $150,000 mortgage. Proposal one is a 30-year fixed rate mortgage at 6% and the other is a 5-year ARM at an introductory rate of 5.25%. The fixed rate mortgage payments would be $899.33 per month, not including taxes. The ARM would have a 5-year period where payments would be $828.31 per month, not including taxes. Bob knows that even if he can afford the extra $70.00 per month for the fixed rate mortgage, that $70 per month may be better spent knocking down principle during the ARM period. He is further confident that as his salary increases, he is likely to upgrade his home within five years or refinance to make home improvements. Bob and Robyn took the ARM loan.

John and Catrina are a married couple with three grown children. John has been employed at the same company for 18 years and Catrina has been with her company for 12 years. They have consistent and stable income. Neither John nor Catrina expect any substantial increases in their salaries. After their last child moved out of the home they decided to downsize and buy a smaller home. They have a substantial down payment and will only be taking a mortgage of $100,000 on their new home. John and Catrina are presented with the same loan options as Bob and Robyn were. John and Catrina, however, know that it is unlikely they will sell or refinance in the next five years. They are comfortable with the payment schedule and, therefore, prefer the certainty of the fixed rate mortgage.

There are countless websites that offer mortgage calculators to determine your mortgage payment. For your convenience we offer one on our site (if you are not going to have one on your site, we can remove this, though I think it'd be good to have one on your site). You can review the different payment schedules based on the interest rates quoted for the fixed-rate and the ARM. Once you know the different payment amounts you will be able to determine which loan makes the most sense for you and your unique circumstances.

Your mortgage professional should also be able to assist you in reviewing the options and making the best decision for you. The more open and honest you are with your mortgage professional the more helpful they will be. It is only if they are armed with full and honest information that they will be able to make recommendations to you.

About The Author

Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com.

ARM – Adjustable Rate Mortgages

ARM – Adjustable Rate Mortgages

by: Dan Lewis

Traditionally, homebuyers could look to two forms of mortgages – fixed rate and adjustable mortgages. While there are now many more options, this article takes a look at the adjustable rate mortgage.

What is an ARM Loan?

An adjustable rate mortgage [“ARM”] is a basic mortgage with one important exception. With an ARM, your interest rate will start low but typically move up throughout the link of the loan. The timing of the movements is dictated by the terms of the loan. The rate may be adjusted every month, but more typical periods are every six or twelve months. Most adjustable rate mortgages also have a cap on the amount the interest rate can be raised in a particular period.

“ARM” Yourself?

A homebuyer has to be very careful when selecting an adjustable rate mortgage. Buying a home necessarily involves budgeting out how much of a monthly mortgage rate you can afford to pay. With an ARM, you have to keep in mind that your monthly payment amount will go up if the interest rate does the same. While you may be able to afford the loan now, what happens if the rate jumps two percent over the next two years?

In the current real estate market, potential rate increases are a troubling issue. In areas where the real estate market is dramatically appreciating, homebuyers are using ARM loans to “get into” homes. Put another way, they are using ARM loans to get a mortgage payment they can afford without giving real consideration to rate increases in the future. Mortgage interest rates have been at historic lows for the last few years. What is going to happen to all of these people when rates rise? It could make the savings and loans crisis of the late 80s look like small potatoes.

If you are considering an adjustable rate mortgage, make sure you do the research. Find out how often the rates can increase and by how much. Try to determine whether you can afford payments if the rates go up significantly over the next few years. With Greenspan retiring, now is the time to be very careful when taking on mortgage debt.

About The Author

Dan Lewis is a mortgage broker with http://www.gwhomeloans.com - San Diego mortgage brokers providing home loans and refinances. Visit http://gwhomeloans.com/services.html to learn more about options for San Diego mortgages.

The Adjustable Rate Mortgage as Long Term Loan

The Adjustable Rate Mortgage as Long Term Loan

by: Stefano Sandano

Adjustable rate mortgages are long term mortgage loans with variable interest rates. They have a schedule of principal and interest payments just like a fixed mortgage, but the interest rate may be adjusted at regular intervals during the term of the loan. Therefore, the monthly payments are likely to move up and down as the rate is adjusted.

An ARM is an important financing alternative for first and second mortgages. In addition, many home equity loans are structured as adjustable rate mortgages.

In addition to the contract interest rate, discount points, loan to value ratio, and maturity, ARMs have their own unique set of terms:

- Adjustment Interval: most ARMs are adjusted at regular intervals stated in the mortgage contract. In between these intervals, the interest rate on the loan is constant. The shorter the interval, the more sensitive the loan is to changing interest rates. Most first ARMs are adjusted annually

- Initial Interest Rate: all ARMs have an interest rate that is fixed until the first adjustment date. Sometimes this rate is set low to attract borrowers, called a teaser rate. Therefore, the initial interest rate does not indicate the long term cost of the loan.

- Convertibility: some ARMs provide the borrower with the option to convert to a fixed rate loan during the loan term.

Because your payments almost always rise later on, some detractors call it a compact with the devil. Nonetheless, an Arm in some markets can cut your initial payments by as much as a third. That can mean the difference between being able to purchase and being left out in the cold.

The best way to understand an ARM is to compare it to a fixed-rate mortgage. With a fixed-rate mortgage you always know where you stand. Your interest rate and your monthly payment remain constant for the life of the loan whether it is for 3 years or 30 years.

With an ARM, it’s quite different. Your interest rate fluctuates, it moves up and down depending on market conditions. Your monthly payment, which reflects the interest rate, likewise can vary up or down over the life of the loan.

Given a choice between a mortgage where you never know what your monthly payment is going to be, and a mortgage where the monthly payment is fixed, any reasonable person would opt for the fixed-rate mortgage. The real key to deciding whether or not to get an ARM is how long the teaser rate lasts. If you get an initial low interest rate and payment for just 1 month, and then it goes up, you have accomplished almost anything.

On the other hand, if the low monthly payment lasts for several years, it can be just the right thing, particularly if you sell or refinance when the teaser expires. In fact you want the teaser to be for as long as possible so you get a lower monthly payment than you otherwise would get. Second, you hope that once the teaser evaporates and your interest rate and payment go up, you can refinance to another ARM with another low teaser.

About The Author

Stefano Sandano is a home equity loan expert and if you want to know more about mortgages and loans you can visit http://www.homequity-loan.com.

Why You Shouldn't Get Hung Up On The Interest Rate Of A Real Estate Loan

Why You Shouldn't Get Hung Up On The Interest Rate Of A Real Estate Loan

By: Jim Olivero

If you where told by a lender you where going to have to pay a high interest rate for your loan, say 12 interest for 30 years on his home with a payment of $750.00 per month. John's friend Bill is renting a house, but he is paying $750.00 per month in rent with no interest (I am using these numbers for illustration purposes). Now, it's a funny thing, but both men live in their homes for the full 30 years and guess how much money both paid out in that 30 years?

Do you think John would have paid more money in the 30 years then Bill did because John was paying a mortgage? The answer is no! Thirty years equal 360 months of payments and if you multiply 360 X $750.00 you get $270,000.00. That means both men paid the same amount of money over the 30 years with one BIG difference! John now OWNS his home but Bill is still paying rent and does not own the home. In fact Bill's rent more then likely paid the mortgage off for the owner of the house he is renting from.

As you can see, even though John was paying a mortgage payment of $750.00 per month, the total amount of dollars paid in the same time period of 30 years is the same. Now Bill has nothing to show for all the rent payments he made except for 360 rent receipts. So you can see how the interest rate does not change the total amount paid over the time period because $750.00 per month is $750.00 per month. No matter what you call it a mortgage payment or rent payment, the bottom line is the same.

So whatever type of mortgage you can qualify for has to suit the payment you can afford and are comfortable with. Of course; the amount of money borrowed, the interest rate, and the term or years the money is borrowed is what will determine your payment.

So the bottom line is: if you get a mortgage that is comfortable for you payment wise... let's say equal to what you were paying for rent, the major thing you changed is the fact that you own the home now and you are not just paying rent or paying off someone else's mortgage.

You know the bottom line is we all have to live somewhere and we have to pay for that living space, so why not own what we have to pay for anyway. And don't get hung up on the interest rate to where it stops you from buying your home... just make the payment amount work for you.

Now let me show you what you can do with a mortgage payment that you can't do with a rent payment.

Stay with me now because it is going to get really good! As you have seen from our example above, the total amount of money paid over the 30 years or 360 payments for the mortgage and rent came out to be the same dollar amount in the end. However, did you know you could change the bottom line or the dollar amount paid when you are making a mortgage payment as well as the amount of time it will take to pay the money back?

A mortgage is calculated by the amount of money borrowed, the interest rate, and the amount of time it will take to pay it back. This calculation is called an amortization schedule. I am going to show you an amortization schedule for a mortgage now and show you how to change the total amount of money you will pay and the amount of time it will take to pay it back! Lets say you get a mortgage for $75,000@12% for 30yrs This is what the amortization schedule will look like:

Payment ---- Interest ---- Principle ---- Balance

$771.46 ----$750.00 -----$21.46 ------$74,978.54

$771.46 ----$749.79----- $21.67 ------$74,956.87

$771.46 ----$749.57 -----$21.89 ------$74,934.98

$771.46 ----$749.35----- $22.11 ------$74,912.87

$771.46 ----$749.13 -----$22.33 ------$74,890.54

$771.46 ----$748.91 -----$22.55 ------$74,867.99

$748.68 ----$748.68 -----$22.78 ------$74,845.21

$771.46 ----$748.45 -----$23.01 ------$74,822.20

$771.46 ----$748.22 -----$23.24 ------$74,798.96

$771.46 ----$747.99 -----$23.47 ------$74,775.49

$771.46 ----$747.75 -----$23.71 ------$74,751.78

Totals ----$8,237.84 ----$248.22

As you can see, when you make a payment on a mortgage a large part of the money goes to interest with a small part of the money going to principle. You will notice the principle balance increases with each payment and the interest balance decreases with each payment, but this happens very slow.

Now, let me show you what control you have over a mortgage:

As you can see; in the 11 months of payments we made on this mortgage, we paid $8,237.84 in interest and $248.22 in principle! This is what YOU can do. When you looked at this schedule after your closing, you noticed the figures. If you were to add the total of the principle for the 11 months of payments ($248.22) to your first mortgage payment and told the lender you wanted the extra money to go towards the principle this is what would happen for you: you would reduce your mortgage by 11 months and save $8,237.84 in interest payments! This happens whenever you make extra payments on a mortgage, no matter how much or little you pay. You always have to specify that this extra payment is designated to go towards the principle and this works best if you start right away in the very beginning of the mortgage!

This means that in your first month you have already changed the total amount of money and time it will take to pay back your loan. The more you can do this, the less money you pay in interest and less time it takes to pay the money back.

The mortgage has to have no pre-payment penalties. That happens to be the majority of mortgages that we see today. However, ask and make sure so that you have no surprises later. This is just one simple thing you can do with a mortgage which gives you control of the bottom line as far as money paid back and the time it takes to pay it back.

Visit me at http://www.easymoney-123.com

I have been in the real estate investment business for over 25yrs. I have put a web site together with tons of information for anyone who wants to learn Come visit me at: http://www.easymoney-123.com

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Debt Management: Proper Planning Holds the Key

Debt Management: Proper Planning Holds the Key

By: Garry Marshal

One of the evils of present times is the fact that the price of every thing has spiralled way over the roof. So much so that one simply cannot live without loans. No wonder then that almost every middle class household is under some sort of debt. And if these debts are not properly taken care of then the situation can turn serious. Indeed, debt management or financial solution is one important aspect of living today. Also, since loans are available easily these days, people often don't think twice before opting for them. And if these debts are not managed properly then one can be rest assured that troubled days lie ahead.

For proper debt management, one should make a timetable on the sequence in which debts should be cleared. One should make sure that the debts which are nearing their lapse date be cleared first; otherwise there is always a risk of a penalty being slapped. The best thing, however, would be to make timely repayment of debts so that the risk of forgetting the last date of repayment does not arise.

However, people grappling with debt crisis can also avail debt management services from different firms to manage their debts. These services can go a long way in handling the debts of a person effectively as well as offering financial solution. These debt management services can suggest alternative means of overcoming debt problems. They can also prove to be of immense use in chalking out a plan to minimise deficit.

Similarly, there are debt management agencies that provide help in a complete package. In other words, they are one-stop destinations for all tax-related worries as they take complete responsibility of finding the right solution for your difficulties. There are also loans available that can help one overcome one's tax troubles.

Debt consolidation loan is tailor-made for such people; they can consolidate multiple loans into one and make payment for the same. In short, it can be said that debt management is not difficult and all that is required is a methodical approach to do the needful.

The author has been in the financial industry for a considerable period of time and has been assisting quite a few reputed banks and other financial institutions. Now he has his own set up and counsels people on debt related queries. He is also assisting OnlineDebtAdvice {Debt Management} and their customers on debt related issues.

Article Source: http://www.ArticleBiz.com

Unsecured Credit Card Debt Consolidation Will Reduce The Rate Of Interest

Unsecured Credit Card Debt Consolidation Will Reduce The Rate Of Interest

By: Arvind Singh

An unsecured credit Card debt consolidation does not need you to have collateral and still offer you lower interest rate.

If you are reading this page, it is most likely that you have decided to take a credit card debt consolidation loan. No doubt this is one wise decision to take, if you are having credit card debts that need you to pay high rate of interest. Moreover, if you have taken the overdraft loan from the credit card company, or you are having multiple credit card loans, you must be paying a hefty sum of money to the credit card companies every month. An unsecured credit card debt consolidation can save you from this circle of debts.

It is a known fact that credit cards companies charge higher rate of interest if compared to other sources of taking a loan. Therefore, it is always wise to pay off the credit card loans as early as possible. For doing that credit card debt consolidation program is a viable option for you. Like any other debt consolidation schemes, in this case all your credit card debts are consolidated to one single loan. As you have to pay for this one single loan from thereon, you will have to pay less for the interest even if you opt for an unsecured credit card debt consolidation.

An unsecured credit card debt consolidation is basically a debt consolidation loan that does not require you to have collateral. Generally the debt consolidation companies ask for collateral before sanctioning debt consolidation loans. One can have either a car or house for collateral. The collateral loans come with less rate of interest. But if you are not having a car or house or simply do not wish to keep them as collateral, the unsecured credit card debt consolidation is the best available option for you. Though the rate of interest for the unsecured loan is higher, you will still gain on the interest on the long run.

It is true that unsecured credit card debt consolidation needs you to pay high rate of interest than any secured debt consolidation option. You can still gain from them and for that you need to be a little patient while searching for the debt consolidation program. Most of the websites offering debt consolidation have credit card debt consolidation calculator that you can use to calculate the amount you need to pay for the consolidated loan. Use the online tool to find out the best unsecured debt consolidation option for you.

Debt Consolidation World is an online informational resource center with articles providing in-depth knowledge about Debt Consolidation.Go for Unsecured Credit Card Debt Consolidation, when planning to consolidate credit card debt, it saves you lot of interest.

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Debt consolidation loans – 5 things to remember

Debt consolidation loans – 5 things to remember

By: David Lynes

Debt consolidation loans have become increasingly popular over recent years, with more and more people with a range of higher interest debts using a low rate consolidation loan to wrap up their other debts and enjoy increased convenience and affordability. Using a consolidation loan can make financial management far easier and can help you to enjoy more disposable income each month.

Dealing with a large number of debts can be a real hassle, as it means dealing with a range of creditors, making a large number of repayments each month, and often paying high interest rates on debts such as credit and store cards. Having just one lower rate loan makes things far easier and cheaper for most borrowers.

It is important when you are looking for a debt consolidation loan that you find the right loan for your needs and circumstances, as there are many lenders that offer these loans, from banks to Internet lenders, on either an unsecured or a secured basis. Below are five things to bear in mind when looking for a debt consolidation loan:

1. Debt consolidation loans are available on a secured or unsecured basis. However, if you opt for a secured debt consolidation loan you can enjoy longer repayment periods and very competitive interest rates, which can help to keep monthly repayments down.

2. If you have poor credit then the chances of getting an unsecured consolidation loan will be slim, as most unsecured lenders will only look at those with decent credit. However, if you are a homeowner then there is a good chance that you can get a secured consolidation loan, which will enable you to repay existing debts and avoid missed or late repayments that could further damage your credit.

3. A consolidation loan can help you to reduce your monthly repayments by a significant amount but it is important to find a low rate consolidation loan to ensure that you keep your repayments down and do not pay over the odds on interest over the term of the loan.

4. Consolidation loans are available from a wide range of lenders, so it is important that you take the time to compare a range of loans to find suitable interest rates, borrowing levels, and repayment periods.

5. The amount that you can borrow on a consolidation loan will depend on a number of factors. If you opt for a secured consolidation loan the borrowing levels are higher, but the actual amount that you will be able to borrow to consolidate your loans will depend on a number of factors such as your equity levels, your financial and employment status, your credit rating, and other factors.

Loans4 provide Homeowner loans for UK homeowners. We specialise in loans for consolidation of your existing credit commitments enabling you to reduce your outgoings to an affordable level and have just one low APR loan.

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Debt Consolidation – Get Rid From All The Financial Worries

Debt Consolidation – Get Rid From All The Financial Worries

By: Arvind Singh

Many people suffer from financial stress due to the unpaid loans and pending bills. Paying monthly loan installments can be an added burden that might lead to frustration.

How many are stressed out by even the thought of a pending loan payment? Do you find repayment of loans a heavy burden? What can you do to minimize the burden of loan payments? If you need valuable answers to these imperative questions of your life, which might save you monetarily from debt and financial burden, please read further.

Today normal middle class people get a lot of loans to buy a car, house etc. The rules or regulation revolving around these loans are usually forgotten and when the times comes to pay back the debt or at least the debt installment these people are stranded and know not what to do. In such cases contacting the debt Consolidation Company might help. Yes, you heard it right; debt consolidation is the only solution that helps you at the time of need.

When you are in the middle of this loan crisis, just go for debt consolidation by availing the services of free debt consolidation help. Many companies who offer loan or lend debt offer this service for free. People cannot afford paid service of the debt consolidation can take these free services. The loan providers consolidate the installments making it easier for the payer to pay his loans in a single payment.

Debt consolidation services can be very useful especially as it helps the loan payer to better manage his finances. Counseling is also provided by the loan service providers in the form of debt consolidation counseling to help people to get guidance and advice on paying back the installment for loans. It is always a good choice to choose a free debt consolidation service as it comes for free.

The loan repayment is a great burden and who will want to get paid services for debt consolidation. Online help is also provided to help people who are looking out for ways and means to pay back their loan installments and be free of loan payments. Always choose a debt consolidation quote with a less interest and don’t take too much time to decide which one to take, as the interest rates might sour up at any time.

Happily pay back the loans as per the guidance and timely help provided by the debt consolidators and sail through the debts that were over powering you and making you frustrated. Relieve yourself of the burden of loan repayments in style by availing the services of the debt consolidators.

Debt Consolidation World is an online informational resource center with articles providing in-depth knowledge about Debt Consolidation. Know how Debt Consolidation Calculator is the first step towards debt free life.

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The Cold Hard Debt Settlement Facts

The Cold Hard Debt Settlement Facts

By: Dan Delgado

Many times we look for a way to solve our debt responsibilities, often times not knowing the option we choose may not be the right one. Everyday in this business I face the same questions, speaking from a debt negotiators perspective debt settlement may or may not be the best way out.

Everyday in this business I face the same questions, speaking from a debt negotiators perspective debt settlement may or may not be the best way out. I will outline some facts that must be kept in mind before deciding to negotiate settlements on unsecured debt. Many debt management programs do not touch on these subjects but I feel they are extremely important to go over before joining a debt settlement program.

Are accounts current or delinquent? In order to negotiate settlements on unsecured debt accounts must be delinquent. Interest rates and finance charges will continue to accumulate on any account that payments are not being made on. Settlements will be based on the balance at time of settlement not when payments where stopped. Do not enter a program that advises to stop making payments to creditors, this will have severe consequences on your credit rating. If accounts are delinquent debt settlement is definitely the program for you because the creditor is looking to save some of the money lent.

Reason or reasons for the amount or amounts owed. Telling a creditor one cannot pay them back on the money used for a wedding is not going to get much sympathy, this was a luxury expense not an emergency situation. The reason for having amassed debt has to be a valid reason and not paying it back has to be a better reason. Such reasons could be situations such as job loss or illness. Not too many other reasons are going to get you great settlements or sympathy.

Are you currently employed? If the creditors find out a person who is delinquent on his/her accounts and is trying to negotiate a settlement is making an amount of money they feel is enough to pay back the debt owed, debt settlement is ruled out. In this case consolidation may be a better option. Be prepared to provide a financial statement if need be. Also, salary may be subject to garnishment if the account is extremely delinquent.

Property or assets. Homes may have liens placed on them, savings or checking accounts may be attached to. If one is planning to negotiate a settlement it is a smart decision to use the equity on the house to generate funds or cash pension plans to help out. Also, friends and family may be a great source for loans.

Spouse. Even if the accounts belong to one spouse the other spouse's income information will be looked at and definitely taken into consideration. After all it is now a household.

Cash advances. If any have been made in the last year debt settlement is out of the question, again, here consolidation may be the best option.

Prior credit history. If there is a history of bankruptcy or other debt management programs this can affect the outcome of settlement offers either negatively or positive. It depends which credit card company you are dealing with. On all of the above points different companies have different guidelines.

There are many more factors involved in the outcome of wanting to negotiate settlements on unsecured debt, the points above are only but a few of them. Make sure to ask as many questions as possible when seeking debt relief, remember one needs to make the right choice on the option taken.

Dan Delgado is an active unsecured debt negotiator, he has experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com

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New Rules to Equity Release

New Rules to Equity Release

By: Andy Wilkinson

Equity release can be seen as one of the only ways to supplement your income when you approach or are in retirement. Equity release consists of entering into an agreement with a bank to take out a loan secured against your house. Unlike normal mortgages the bank then lets the interest accrue (roll up) rather than the householder pay it on a monthly basis. The loan is repaid to the bank once the homeowner dies and anything left is then passed onto the beneficiaries of the estate. Until recently equity release has only been available to the over sixty five. However this week a few lenders have drop the age at which you can apply for an equity release scheme. You can now enter into a equity release scheme from the age of fifty five, however the amount you can borrow will be much reduced. From last week two lenders are offering equity release to people aged from fifty five. The maximum advance however is reduced to 35% of the property's value at the start of the scheme. The lenders claim that they have reduced the term to help those who have retired early or those who wish to give their children a deposit for their first home. However as the lenders are now allowing the loan to be taken earlier this means that it will accrue even more interest payments so your debt will be bigger and what you leave in your estate worth less. The interest rates are not cheap either with rates above six and a half per cent being typical. The sums can be quite staggering. If you had a house worth £500,000 and you took a ten per cent loan of £50,000 at the age of fifty five. With interest of six and a half per cent this loan will have grown to £240,819 by the time you are eighty.

The lenders offer two types of equity release schemes. The first is the cash release or draw down scheme. This involves taking equity out of your home only when needed up to an agreed limit. This can save you interest on the money that you do not need at this stage . The second scheme is where you take the full lump sum from your house. How much you take out depends on your age. The younger you are the less you will get from providers of these schemes. And as we already know the younger you are the more you will pay in interest. It make you wonder therefore whether these schemes should be taken at a young age? As well as the interest rates the borrowers would also have valuation, legal and arrangement fees to consider.

In defence to these schemes they do offer negative equity guarantees. That means that if your house was worth less than your loan at the end of the term then the bank would not come after you for the difference.

Apart from the huge interest bill there are other downsides. First of all you would find it very hard to move house with an equity release scheme in place. This is because the house is mainly owned by the bank and you will find that your share of the equity has been reduced. Many advisors say that if you can afford it look at taking out a traditional mortgage rather than a equity release scheme. Many however would struggle to get a mortgage later in life. It may then be better to sell your house and downsize releasing equity that way. Or let your kids take a mortgage out on your house which you can both contribute to.

For more information about home buyers please visit our website or contact us.

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Paying Off Holiday Debt Quickly - 6 Tips for Consumers

Paying Off Holiday Debt Quickly - 6 Tips for Consumers

By: Valeri James

Dana, a 30-year old public relations specialist, may be earning big bucks while climbing the corporate ladder but like most unattached career women in town, she is struggling with the payment of her credit card balances. For Dana, Christmas is a challenging season as she would have to rein her spending impulses to remedy her already worsening credit rating.

Like Dana, most Americans (single or married) are faced with budgeting problems. Bad credit can get worse with overspending especially during the Christmas season. Holiday debts can pile up and contribute to a negative credit rating.

A negative credit rating is just a symptom of a budgeting problem that can get worse if it goes unchecked. If you still have left-over holiday debts from last year or if you have already placed yourself in deep Christmas debt this year then talk to a debt counselor or consider the following sure-fire tips for paying off your holiday debts quickly.

1. Use CASH whenever possible. Have you noticed how you become more conscious of spending when you need to pay in cash? Paying in cash allows you to keep track of your purchases in real time and by doing so (whenever possible) you would be able to keep yourself from splurging. Ergo: less credit card balances to pay at the end of the month or whenever your card is due.

2. Use your credit card wisely. That strip of hard plastic should be used only when necessary. The first rule of thumb is to use CASH whenever possible. However, American society is so dependent on plastic that you may have to use your credit card more often. Just make sure you do so for reasonable and necessary purchases. Christmas is not a license to overspend. You may be able to buy all the things you want for Christmas (up to your credit card's limit, that is!) but your credit history will suffer if you are not able to pay all your debts on time.

3. List all your outstanding debts. You may be spending too much because you do not keep track of your debts. Document your debts (both credit card and otherwise) and print them out for a quick reference. Seeing your actual debt in black and white will help you cut back on unnecessary expenses and Christmas spending until you have cleared your credit card balances.

4. Make holiday debt payment a priority. It is fun to spend but if you have over-expended your wallet then you have no choice but to prioritize the payment of your debts first before you incur new ones. If your Christmas debts are divided among several credit cards, choose the ones with the least amount and pay it first. Then choose the other credit card balances that you can afford to pay given your financial state.

5. Sacrifice your little pleasures. Paying off your credit card balances can be a pain especially when your finances are limited. This can mean little sacrifices like cooking home meals instead of eating out and drinking instant or office-made brewed coffee instead of going to expensive coffee shops during break time or after work. Before you know it, you already have enough savings to pay for some of your holiday debts.

6. Look for additional sources of income. If your income is limited then you may have to look for additional sources of income to pay off your holiday debts. You can monetize your hobby and make good money out of it. If you are good in photography, why not take photos of your fellow workers during the Christmas party and sell them their photos? Or if you bake a mean chocolate cake, why not sell them this Holiday season? Who knows, your sideline can become a business someday which will help you improve your finances.

If despite these tips you still find yourself overspending and incurring Christmas debts like there is no tomorrow then you should get professional help. Debt counseling groups and Certified Credit Consultants can help you get your spending habits as well as your credit back on track.

Valeri James is the President and CEO of Simple Solutions Credit Consulting, Inc. A consumer advocate and author with over 22 years of experience in the credit industry, she has helped thousands of consumers escape the trap of debt and bad credit. If you are worried about debt or low credit score visit Simple Solutions Credit Consulting or call 1-888-303-7722 for a FREE consultation.

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Finding A Home Mortgage Loan

Finding A Home Mortgage Loan

By: Sarah Reeders

You have a dream real estate in mind. You want to get this great piece of property. However, finding the best real estate mortgage loan is a key to purchasing a home that will make the most effective for your moneys worth.

Currently one call to a mortgage finding service could leave you with so much mail that it would be classed as junk mail! Literally there are hundreds of mortgage companies who want to help you buy real estate. The problem with this, is that it can leave you confused, distressed and disappointed. This is why it is important to find a suitable mortgage for your needs.

There is light at the end of the tunnel, and with so many choices to which property loan is best, you can find a home loan mortgage that is right for your needs. This means finding a home mortgage loan that has the right balance of payment terms that fit within your budget and income level. After all buying real estate property on home mortgage property loan is a long term decision and needs to be made wisely.

The purpose of a mortgage loan is to get you in a position where you have the money now to buy the home you want. Though there are subtle differences between the home mortgage packages that you can find available. These differences could be in different advantages and benefits, some even offer cash-back.

A lot of big banks reward there customers with a property loan customer loyalty type of property loan. This could include benefits such as a low interest rates on your mortgage for your home if you are a customer of the bank. You could also get special offers which are not available to people who are getting a home mortgage, who are not customers of the bank. Your long term good standing with your bank, can also help in the process of getting a property mortgage loan. After all, the bank has proof of your credit worthiness over the years.

To get a property mortgage loan from a bank is not always the best option, sometimes. With so many different mortgage lenders and mortgage packages, you may find better offers with other mortgage loan providers. This is a point where research into the different home mortgage loans can really come into there own.

When you get a mortgage to purchase a home, the sums are not the same sums to buy a loaf of bread, they equate to many years of your hard work after the completion of the property loan. This makes even the smallest point of difference in home mortgage rates to make a big difference on the long term of what you will have to pay back. This saving can be as much as saving thousands in property mortgage loan repayments.

Even with the highs and lows of the current day, the property market is constantly growing and mortgage loan providers are becoming more competitive so home buyers should take advantage of this. Securing the best mortgage loan deal to suit your position could lower the risks of you being unable to make repayments in the future and prevent your credit rating from suffering.

Also remember if you can not find a mortgage home loan that is best for your needs, there are many more mortgage companies that will give you a personalized property loan plan. For example if you foresee future increases in income, for example, you may decide on the type of property mortgage loan that allows smaller repayments at first which gradually become higher as the years go on. There are so many varieties available, that nobody should feel forced into a mortgage home loan package that will leave them living uncomfortably.

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When Remortgage Is Essential for Your Home

When Remortgage Is Essential for Your Home

By: Ajeet Khurana

Remortgages are a great option for a variety of reasons. But before you decide to go in for one, make sure that you have sufficient reason to do so. A new mortgage could be your downfall or it could open up new doors for you and your family. Do not go ahead of yourself by filling out applications as soon as you see lower interest rates. Skim through the following questions and let your answers guide you.

- Why have you been thinking of remortgaging your house? Is it because you want to cash out and pay off some credit card debts or have your home remodeled? Are the monthly mortgage payments too much for your income? Is the present rate lower than that of your existing loan? If you already have a stable loan and just want to cash out, maybe you should reconsider the benefits of having some extra money left over after paying your mortgage until you reach your retirement years.

- Do you have plans on staying at your home for a long time, or are you planning to move within the next few years? If there are no future plans of moving to another state, then refinancing could be a good idea about now, especially if you are being offered a lower interest rate. However, if for some reason, you have to move a lot, a remortgage will not be a good idea.

- Do you think you will refinance within the next few years? If you have refinanced your home more than twice since you availed of it, you might want to stop now before you become dependant on loans. Remortgage cannot do away with all your debt issues. Also, consider the fact that mortgage interest rates are not static, a good deal this year could be the worst one the following year. If you can wait before you go in for a remortgage plan, it is better to wait.

- Do you have steady employment? If you've been moving from one job to the next in the last couple of months, you might want to take a deep breath first. Think a hundred times before you go in for a new mortgage loan for it might have some initial costs.

- What are the interest rates? (Your current rate as well as the prevailing rate) What are the terms of the loans you have and the one you would like to get? Choose a new mortgage loan only if you are sure that your savings will increase substantially. If the new term is 30 years, while your current one is only 15 years -- you will end up paying more. Think of the long term advantages and not just the day to day benefits of remortgaging your home.

- What is amount of equity you already have built up? Many people have little idea about home equity and this tends to lead to a lot of confusion. Equity is the actually the difference of how much your house is worth now and how much you still owe on your mortgage.

Do not plunge into the unknown just because everybody else is doing it. You might have a great job today and may be able to afford the mortgage. But you should give some serious thought to the long term possibilities as well.

For a bad credit remortgage, you need remortgage deals that allow you to remortgage bad credit.

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Refinance Loan Financial Solutions

By: rateempire

Before finalizing on any particular Refinance loan it is important to have a clear financial objective in mind. This means that you have to learn about everything from when you should refinance to how you can increase the value of your home. All these things will make you more aware and confident to choose the most appropriate loan. Ultimately, the decision is up to you to decide which the best refinance loan option for you.

There are multiple ways with which you can opt for your refinance loan. These are -

Adjustable Rate Mortgage (ARM) to a fixed rate Mortgage

This means that if you have an adjustable rate mortgage (ARM), it may adjust to a rate that is higher than a fixed-rate mortgage. If the situation is unsuitable then it might be an excellent time to consider refinancing to a fixed-rate loan.

It is essential for everyone that before taking any refinance loan to consider the amount of time he or she plans on being in his or her home. If one is just going to be in the said home for a few more years, it may make sense not to refinance out of your ARM. If one is going to stay in there for a long period of time (at least seven years), then it might be a smart move to refinance to a fixed-rate mortgage.

Fixed Rate Mortgage to an ARM

You have to first decide how long you plan on being in your home. Many people move within nine years so it becomes meaningless to pay a higher interest rate for a 30-year fixed-rate mortgage because you're not going to stay in the home that long. Doing so may be costing you more money than you can afford. Consider refinancing to an ARM instead - you'll get a lower rate and lower your monthly mortgage payment.

Easy ways to reduce your monthly payment with a refinance loan -

-You can simply refinance to a lower interest rate. A lower rate generally means a lower monthly payment.

- By changing the term of your mortgage you can reduce your monthly payment. For example, if you take a 20-year mortgage, you can lengthen the term to 40 years.

- Although, if you have a 40-year mortgage and one of your financial goals is long-term savings, you may want to consider shortening your term to 25 or even 20 years. Your payment will be higher, but you will pay much less in interest over the life of the loan, saving you thousands of dollars in the long run.

- You can always refinance to an interest-only loan.

For most people who want to save or reduce monthly payments there is also the option of interest only loan. This kind of refinance loan is very popular, easy to manage and useful. An interest-only loan gives you the option of paying just the interest and as much principal as you want in any given month.

Refinancing to an interest-only loan is a good choice for anyone looking to make his or her money work harder for him or her. Here one can get the opportunity to use the money saved from the refinance loan for another purpose.

-One can pay down high-interest credit card debt -Save it for your children's college tuition. -You can buy a car for your family. -Use it for your home improvement

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#1 Best Mortgage Rate, 1bestmortgagerate.com, compares the best mortgage rates and mortgage loan interest rates. Compare refinance rate quotes and debt consolidation rate quotes. For more information please visit www.1bestmortgagerate.com/tips/1.html">Refinance Loan

5 tips from Leonard Rosen, Americas Hard Money Lending Expert

5 tips from Leonard Rosen, Americas Hard Money Lending Expert

By: Leonard Rosen

1. What is hard money and how does it work?

Hard Money is money for any type of real estate transaction that does not conform to traditional banking criteria. They are equity based loans in which borrowers credit score is not taken into consideration. It can be used for Residential, Commercial, Construction or Raw Land. The investor/lender does appraisal and borrowed should have 25% equity. Based on value and equity they can borrow against that. It can be used for foreclosures, defaults, etc. It works for Commercial borrowers that do not meet minimum loan requirements.

2. Is hard money predatory or at the very least not moral?

Residential Hard Money allows borrowers more time, breathing room from foreclosure or defaults. Hard Money is more expensive but is a big risk for the investor/lender.

3. How expensive is this type of mortgage?

Average is Residential- 10.5% and if it is a type of 2nd mortgage is averaged to about 15%. Depending on area of the country and how much equity the borrower has.

4. Why would anybody use hard money for a mortgage?

Hard Money is not a solution for everyone. For example on a Commercial Project- stopped because of no funds- the builder has 3 options 1. Stop the project 2. Take on a partner or 3. Hard Money. Hard Money is less expensive then bringing on a partner.

5. What are the benefits of using this type of product?

For residential borrowers- stops foreclosure, gives time, gives options.

For commercial borrowers- paying the high coupon cost is less expensive then bringing on a partner.

Rosen adds, "Hard money is a lifesaver for many families across the country and it helps people going into foreclosure or default by allowing them time to get their house sold or rented out.

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Mortgage Refinancing Companies Scam

Mortgage Refinancing Companies Scam

By: Moses Wright

With the current market situation, privatization is the new buzzword. The effects can be noticed in sectors such as real estate. This in turn has impacts on loans and money lending, speeding its growth and development. There is greater concentration on real estate as many are aware of the opportunities that may be present.

In order to cope with the changing trends, the mortgage refinancing companies penetrate the market by all means. Mortgage refinancing scams also develop in parallel to the above strategies. The mortgage refinancing scams result in misleading the customers, way ward. This causes negative impacts on the real business. Due to these scams people lose their trust in the mortgage refinance system, thereby giving a heavy blow to it.

Since mortgage refinancing is very widespread nowadays, people have got different choices to deal with before availing the service. One of the underlying factors that makes mortgage refinancing so alluring is the possibility of making more money and the services provided. And it is a fact that the mortgage refinancing scams developers spread their illusion- webs on the common people to thwart the intention of the real mortgage refinancing companies, and to misguide the people, and to make them prey to their swindles unending.

People all over are on the look out for changes. They may be attracted to anything that offers unique features. Mortgage refinancing scams are everywhere and use all forms of media, from print ads to the Internet to try and attract potential victims. The gimmicks they show will be taken as granted by the customers and become prone to their whims and fancies.

A certain extent of these mortgage refinancing scams could be avoided if the customers are vigil on these scams and possess a will not to be carried away by the dream filled offers they spread before us. Mortgage refinancing companies can offer good customer services and is speedy in dealing with the financial aspects.

As the number of companies that are engaged in mortgage refinancing is swelling day by day it is quite a task to select a convenient company. Mortgage refinancing scam developers intrude here with their tactics. It should be kept in mind that the swindlers would never fail in making us believe them and we follow their line like the children moving under a magic wand.

Those who tend to fall prey to such scams are the elderly or those in the minority groups. Also, people of low-income group and bad credit lines are affected by the scams. Most of the refinancing scams are connected with home equities. Before signing up a contact with any companies, one should be vigil, otherwise you can lose your home.

Most of these mortgage refinancing scams penetrate the people who are in dire need of money. They are eager to turn a profit and might follow the lead of the scammers. Subsequently, they may land up in trouble and may lose their dear home forever, and fall in more debt. So, beware of these mortgage refinancing scams and the scammers.

Bear in mind not to lose your head and make a wrong financial decision that is going to affect you for the rest of your life.

Moses Wright likes to do home improvement projects whenever he is free. He provides more info on mortgage refinancing help on his site: http://www.bulletpedia.com/refinance.htm

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Knowing When To Opt For A Remortgage

Knowing When To Opt For A Remortgage

By: Graham Bradlington

There are various situations which will determin the correct time to go for a remortgage. For example, if you are currently paying more interest on your existing mortgage than necessary then you can quickly and easily save money by opting for a remortgage

You may come to this realization listening to some friends tell you that they have already obtained remortgage loans. If you have any doubts or are concerned in any way about remortgaging, then talking to them in detail can be revealing and may clear your mind in regards to saving interest payments which you currently pay on your existing mortgage.

A remortgage can also reduce your monthly outgoings. If, for example, you have made payments for 10 years on your existing mortgage and then stretch the remainder over the next 30 years by a remortgage then your monthly repayment will be greatly reduced making your home much more affordable. You can even use a remortgage to shorten the repayment period of a long term loan to a much shorter period saving considerably on interest at the same time. However, you need to take into account the closing costs and other expenditure involved in closing your mortgage with your first lender to determine if a remortgage would really be beneficial.

Another situation for a remortgage can be when you stand in need of ready cash for some urgent need but cannot find a source to provide you with the necessary funds. A remortgage of your home can be the right answer. However, this is only a suitable solution when you have already made regular repayments of your home loan over a long period and have created a substantial equity in your property. Since your house was first valued for the initial mortgage, it has more than likely increased in value. A reevaluation, that is necessary before the remortgage, will enhance your borrowing limit and leave you with a larger amount to use for your needs after paying off your first mortgage.

You may need the cash to take a long awaited vacation or to pay for a college education. You can use the money to make home improvements to add value to your property like an extension or kitchen refurbishment. Then you may use it to free yourself from crippling personal loans or credit card debts that carry astronomical interest rates. Devoting a little time and attention to details discussed above can help you in ascertaining the right time to go in for a remortgage of your home.

Graham Bradlington is the marketing manager for Quickly Finance Limited, specialising in super fast Secured Loan & Remortgage applications for UK homeowners. Being 100% independent they can search the whole market for the best deals! For more info: http://www.QuicklyFinance.com

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Debt Management and Loan Refinancing

Debt Management and Loan Refinancing

By: Mark Lambie

Everyone falls into debt at some point of there life. A lot of these people also get their debt refinanced in order to reduce the interest cost. While if properly worked out this is no doubt a great benefit, but chances are that it is not being worked out as well as it could be. Loan refinancing is a highly complex operation and there are many variables involved. It is important to know what is available and what you are doing in order to get the most out of the deal.

A lot of people opt to have their homes refinanced. By refinancing the home mortgage with either a longer repayment option, or a lower interest rate (or both) you effectively reduce the monthly payment that you need to make. This isn’t so simple though.

If you get a longer term loan you will be indebted for a longer period of time. If the interest rate is higher on the longer period loan, then your monthly payout could be more or less, depending on the intensity o the increments. Only a same term loan with a lower interest rate is the wise option to choose.

You can also do the reverse. If you are looking to end your loan more quickly so that you can be debt free then you have to change your debt income ratio. By shortening repayment programs you will increase your monthly payments and only a lesser interest rate would compensate for this which is not always possible. Also, by refinancing for a shorter period loan you will be increasing your monthly payment liability so make sure you have enough funds to do this on a regular basis.

The important thing to do is to reduce your overall debt. As home loans carry the lowest interest rates it is usually best to extend the repayment programs even if the interest rate goes up. This way by lowering the installment you will be able to use the surplus saved to repay other, higher interest bearing, debt such as credit cards.

The underlying principle is to exchange your expensive debt for cheaper financial resources.

Mark E Lambie owns and operates Homeowner Online Loans

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How to Pay Off Your Mortgage Faster

How to Pay Off Your Mortgage Faster

By: Jeff Hammerberg

The demise of the mortgage industry is the news of the year. Exotic loans, predatory lending practices, high-flying investors buying risky mortgage securities, and the plight of homeowners faced with mounting monthly payments are just a few of the topics making headlines everywhere. But little attention is given to teaching consumers how to pay off their mortgages completely, in a shorter amount of time, so that they are no longer tied to borrowed money and can own their homes free and clear.

Buying your own home is a practical realization of the American Dream. We who live in the USA pride ourselves on the value of freedom in our everyday lives, and paying off your mortgage is one of the most liberating goals a homeowner can accomplish. The way to shrink your mortgage is to pay off the principal at an aggressive pace. More and more consumers are making it happen by following disciplined, strategic formulas.

The basic premise of any plan to reduce your debt revolves around three steps:

1) Use your monthly statement to find out the breakdown of your mortgage payment. There are two main components. The principal payment shows the portion that you pay each month of your actual original debt. The interest payment represents the fee you pay for borrowing the principal.

2) In the beginning of your loan, monthly payments may be entirely dedicated to interest. As the loan matures, you will gradually pay larger chunks of the principal. Paying off the principal is the key to erasing your debt, and you can voluntarily increase your principal payments to speed up the process.

3) Decide what you can afford. Simply add that to your regular payments and designate it for payment of principal so that your mortgage company will credit your account appropriately. You want to ensure that they don’t use it to pay interest, because applying it to principal instead is more effective and should be your main goal.

To accelerate the process of "paying down" your mortgage, apply one or more of the following ideas that help you chip away at the principal at a faster rate:

Make an extra payment every year:

Make the equivalent of an extra payment each year. One way to do this rather painlessly is to divide your normal payment into twelve parts. Next, add one-twelfth to each payment you make during the year. For example, if your monthly payment is $1,200, divide it by 12 to get $100. Pay an extra $100 each month. After 12 months you will have effectively paid an entire extra monthly payment.

By paying an extra $100 a month on a 30-year, $200,000 mortgage at 6 percent interest, you will shorten the life of the mortgage by about 5 or 6 years, saving around $25,000 in interest payments.

Refinance into a shorter mortgage:

If you find a 15 or 20-year conventional fixed rate loan that offers lower interest than your 30-year loan, you may save money by refinancing into the shorter mortgage. You’ll pay off your loan much sooner, too. But your monthly payments will increase due to the shorter amortization period.

Pay biweekly instead of monthly:

Sending a payment every two weeks is another tried and true strategy for reducing the balance on your mortgage. You don’t double your payments but instead divide your normal payment into two increments, so the amount you pay each month remains essentially the same as normal. But by paying half of your payment every two weeks, you wind up paying a full extra month’s worth of mortgage payments each year. The result is a function of mathematics and how our 52-week, 12-month calendar operates.

Many people pay a fee to have their lender set up an official biweekly payment program. This can legally obligate you to stick to the program, but it can also cost so much in service fees that the whole idea defeats itself. If you don’t have the discipline to pay biweekly, paying your mortgage company to set up a plan may be justified, but in most cases it is a waste of money because you can put the plan in motion for free all by yourself.

Invest gifts, year-end bonuses, and tax refunds:

One way to shave your debt is to simply increase your payments of principal whenever you can afford it. Put your extra income directly to work paying for your home, and it may turn out to be one of your wisest investments.

If you, too, yearn to "get off the grid" by no longer having to make a monthly mortgage payment, it is certainly possible. With a little bit of planning and some motivated determination, you may soon be debt-free. Then you can join the ranks of those happy homeowners who sit atop a mountain of equity and never lose any sleep over a pile of outstanding debt.

To save time and money when buying or selling real estate, visit www.GayRealEstate.com and www.GayMortgageLoans.com. Or just call toll free 1-888-420-MOVE (6683). They are professionally devoted to serving the global GBLT community.

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Time to switch to a tracker mortgage

Time to switch to a tracker mortgage

By: Graham Bradlington

Fixed-rate home loans may be in mode, but with a reduction in rates imminent it would be advisable to consider the tracker option instead. Fixed-rate mortgages have been very popular in recently but with all the talk about interest rate cuts, a tracker mortgage could be the way to go.

Even though interest rates have been kept on hold over recent months, indications point to a gradual reduction over the coming months and year ahead. A tracker mortgage would be a sensible option as it follows the movements of the Bank Of England base rate.

According to the Council of Mortgage Lenders, fixed rate mortgages reached a peak in August 2007 and they accounted for almost 80% of all mortgages taken out in the UK.

Fixed rate mortgages appeal to those who want to know exactly how much their repayments will be each and every month and are an attractive option in circumstances where there is an upward trend in the interest rates. However, most experts now agree that the interest trend will be downward therefore the tracker mortgage will be the most appealing as many will worry about fixing an interest rate at the peak of it's cycle.

A tracker mortgage is named in this way since it tracks the movements of the base interest rate from the Bank Of England. In effect it calculates the mortgage repayment based on the base rate of the day and adds a fixed percentage to this rate. The mortgage repayments fluctuate in line with the movement of interest rates. This could be deemed an ideal mortgage when the trend of interest is downward. Since, when the Bank Of England rate falls the mortgage payment also falls. The fixed amount charged in addition to the base rate can vary from lender to lender, so it is wise to shop around for the best deal.

With tracker mortgages you can choose to have a fixed period, such as two or three years, where the mortgage interest rate will track the Bank of England base rate. Once this period had expired the mortgage will revert back to the standard variable interest rate charged by the lender.

With this kind of mortgage there are the options to revert to a tracker for a fixed period which is usually 2 or 3 years. The mortgage repayment will be calculated upon the Bank Of England's base rate during this period. After the agreed tracker rate period expires then the mortgage will revert to the standard variable rate. The advantage of choosing this product during a period of interest rate cuts is that your repayments will decrease during this period and after the expiry date you can review your options again.

Graham Bradlington is the marketing manager for Quickly Finance Limited, a company which specialise in Fast track Secured Loan & Remortgage applications for homeowners. Quickly Finance is 100% independent & can search the whole market for the best deals... quickly! For more info: http://www.quicklyfinance.com

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Why Some Debt Relief Programs Fail To Work

Why Some Debt Relief Programs Fail To Work

By: Eric Gartle

Has anyone ever asked themselves why something failed to work. Many times things fail to work because they are not given the attention they deserve, same with debt relief programs.

I have seen many people join debt relief programs either to consolidate or to negotiate on their debt and fail. why do they fail? People fail debt relief programs simply because of their lack of attention. Many people simply forget or choose to forget they joined a program to help relief their financial situation. This is the same as doing nothing. If you are married and do not pay attention to your spouse, what happens? Most likely you will end up divorced. Same thing happens with the debt relief program you so enthusiastically joined. When one makes contact with a counselor and speaks about his or her debt obstacles not to call them problems, promises are not only made by the agency. Promises are also made by the person seeking help. I have heard people say they are going to save $200.00 a month to lower their debt and two years into the program they have the same $200.00 they started out with. Now, my question here is, who is to blame? The debt relief program or the person who joined the debt relief program? You decide.

No one forces anybody into signing a contract to join their specific debt relief program, it is understood the consumer looking for this help chooses the agency. I have not heard of the first person say they had a gun put to their head to join a debt relief program. No, we as individuals make these choices, just like when we go out and look for the perfect automobile or apartment we want to live in. I understand sometimes we make mistakes, we are all human. If you seek help and very soon find out the program you joined is not the right one for you, please get out of it. Most programs should come with a clause that will allow you to terminate the contract any time you choose to.

The contract. Yes, the contract, all that fine print just like the credit card agreement that was signed three years ago and never read. Who reads these things anyway? Very few people do, that is why we are seeking debt help right now, it is called failure to read the fine print or the contract, again lack of attention. Make sure you read the contract with your chosen debt relief agency before you initial it, date it, sign it and fax it in. Do yourself a favor please pay attention and read it. By now, everyone reading this article should be catching my drift, please read the fine print before you sign any type of contract.

Once you are in a debt relief program do not lie to yourself, if you committed yourself to saving a specific monthly amount please do it. By not doing it you are only hurting yourself and your family. Please analyze your situation before acting out. My best advise is before going on the internet and driving yourself crazy with debt relief agencies, speak to a lawyer, an accountant, somebody who knows about finances before you make any desperate decisions.

Remember what got you into debt in the first place. Desperate decisions. Remember, haste makes waste. If you are not totally sure which way or what type of help you want with your debt take some time out and discuss it with your spouse and make sure you make the right decision as a family. Make smart choices, many people fill their mouth by saying their debt relief programs where a scam, in many cases they are, in many cases we lie to ourselves and end up blaming someone else for our lack of attention.

Stop blaming everyone else, stop using your credit cards and live within your means, no one but yourself is responsible for getting you out of the financial distress you are in, it simply comes down to finding the right help and helping yourself make the debt disappear. It does not disappear because you joined a debt relief agency, it disappears when you stop spending the money you do not have and whatever little is left goes to your debt. Take a good look in the mirror and ask yourself who is responsible for your debt and do something about it.

Eric Gartle has worked in the debt settlement industry for the last 10 years and has vast experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com

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Mortgage Refinancing (Refinansman) In Turkey

Mortgage Refinancing (Refinansman) In Turkey

By: Berk Akman

The interest rates in Turkey have been falling in the last one year and more and more people are interested in refinancing their mortgages. With lower interest rates, refinancing mortgage loan can lower down monthly payments significantly. In addition it is possible to change the structure of the mortgage by changing the duration, currency, and interest rate type. Below we go over advantages of the refinancing and important factors that should be considered in a refinance decision in Turkey.

Lower Interest Rates In Turkey, interest rates have been falling in the last one year. About one year ago in November 2006, the average monthly mortgage interest rates was about 1.8 percent, which decreased to 1.6 percent in early 2007 before the mortgage law passed on March 2007 and currently it is about 1.3 percent. Such a sharp decrease in the monthly interest rate clearly makes refinancing a very beneficial decision. To demonstrate the gains from the refinancing, consider a 10-year loan of 100,000 YTL. A drop of interest rate from 1.6 percent to 1.3 percent reduces your monthly payments by 12 percent (from 1,880 YTL to 1,650 YTL). Over the remaining length of the loan, the difference between two loans makes 27,543 YTL, which is about 27 percent of the original loan.

Fees In the above example, fees are assumed to be zero; however, it is very important to know the closing fees, lender fees, and other third party fees. Since increased costs decrease the benefits received from lower interest rates. However, the benefits gained because of the decrease in the interest rates in the last one year would be typically more than the costs incurred from the fees. For example, the basic calculation above assumed that fees for closing the loan and getting the new loan are zero. To be more realistic, suppose that the early payment penalty of 2 percent is applied to close the original mortgage. Also assume that an additional 3 percent is paid for the new mortgage. With these fees included in the loan, your monthly payment would be 1,732 YTL, still a 8 percent reduction in the monthly payments compared to the 1,880 YTL with the original loan. Over the length of the loan, the total gain from the refinance would be 17,641 YTL, still a significant gain for a loan of 100,000 YTL over 10 years.

No Early Payment Penalty if… The mortgage law that passed on March 2007 introduced up to 2 percent early payment fee for fixed-rate mortgages if they are paid before the due date. However, if you got your mortgage before March 6, 2007, you would be exempt from the 2 percent early payment fee. So in the above example, without the 2 percent early payment fee your monthly gain would be 1,700 YTL and your total gains would be 21,602 YTL. Let's also note that early payment fee is only valid for fixed-rate mortgages but there is no penalty fee for adjustable rate mortgages.

Refinance in Foreign Currency with Lower Interest Rates Refinancing can be a chance to change the currency of the loan. In Turkey, the interest rates for mortgages borrowed in Turkish Lira (YTL) are significantly higher than those borrowed in foreign currencies such as Euro, US Dollar or Japanese Yen. On the other hand, the risk of borrowing in foreign currency is also high. Earlier financial crises have always ended up with sharp depreciation of the Turkish Lira. For example, in 2001 the Turkish Lira depreciated more than 50 percent in only a few days. Given the large current account deficit of Turkey, about 7 percent of the GDP and the largest deficit for an emerging country, we believe that the probability of Lira's depreciation in the next 10 years is also very high. So possibility of such a crisis in the future should be included in the risk analysis. Briefly, as a rule of thumb, borrowing in foreign currency may be advantageous if your income is in foreign currency or if the length of the loan is only a few years. What if the interest rates continue to fall? If you expect the interest rates and inflation to continue to fall in the future, the best strategy could be changing the fixed-rate mortgage to an adjustable-rate mortgage. This way, your mortgage interest rates will continue to fall if inflation falls in the future. In addition, re-refinancing the fixed-rate mortgage would be more costly in the future because of the 2 percent early repayment fee if you want to re-refinance when interest rates get even lower in the future. On the other hand, there is no early payment fee for the adjustable rate mortgages. We should also stress that an economic crisis that result with a depreciation of the Turkish Lira would also increase the inflation. Since inflation is the base index for the adjustable rate mortgages in Turkey, your interest rate and monthly payments may increase sharply with adjustable rate mortgages. So we suggest being very careful before switching to an adjustable rate mortgage for long loan terms.

Decreasing the loan term By refinancing, you can change the duration of payment: you may decrease it or extend it. If you refinance with a shorter loan term, you can pay off your loan faster and therefore build up equity in your home faster. Especially, in Turkey, since the interest rates are higher than the ones in developed countries, the optimal length of the mortgage is shorter than the developed countries. A mortgage with a loan term longer than 10 years is currently too costly and you may use the refinancing as a chance to reduce the duration. As an example, if we go back to our example with 10 years mortgage of 100,000 YTL with 2 percent closing and 3 percent opening costs and if we decrease the mortgage length to 9 years from 10 years, monthly payment decreases 3 percent to 1,815YTL (from 1,880 YTL) and the total gains increase to 29,580YTL (it was 17,641YTL with 10 years refinancing). So it is suggested that you refinance with a shorter loan term if possible.

Extending the loan term Refinancing is also one of the best ways to acquire funds which may be used with any purpose, including the opportunity to pay off other debts. If the duration of the loan is extended a few years, somewhat more funds would be available, however, as stated earlier, the interest rates are high in Turkey and therefore gains from extending the length of the loans may not be very high in long term loans. For example, going back to our example of 10 years mortgage of 100,000 YTL with fees, if new duration with refinancing is extended to 11 years, the monthly payment decreases to $211 YTL, reducing the monthly payment by an additional 65 YTL (from 1,733 YTL) when compared with the 10 year refinancing.

Compare APRs Remember that a wrong decision in mortgage refinancing can take years to recover from. Before making any decision on refinancing, you should compare all lenders in Turkey properly. In comparison, make sure that you use the Annual Percentage Rate (APR), which is the annual rate inclusive of fees on the mortgage. Kredihavuzu.com has all the tools you may need for such a comparison including all the up-to-date interest rate and fee information for all the lenders in Turkey.

Berk Akman works at KrediHavuzu.com, Turkey's leading online mortgage (ucuz, hesapli konut, ev, arsa, is yeri, refinansman kredisi) broker dedicated in providing interest rate, fee information and various advanced mortgage calculators (e.g., refinansman (kredi yeniden yapilandirma) bul ).

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Debt Consolidation Loan – To get out form your Bad Debt with Debt Consolidation Loan

Debt Consolidation Loan – To get out form your Bad Debt with Debt Consolidation Loan

By: Jeni Joe

Debt consolidation

Debt consolidation is the process of combining many debts into a single payment, usually resulting in lower monthly payments. There is also then only one creditor to pay. By some, it is known as a Consolidation Loan however a loan is not the same thing, please see site for more info if interested. There are many debt consolidation firms, though some are not as reputable as others. Choosing the right firm is very importance, as some firms may use dishonest tactics in their consolidation loans.

After selecting a debt consolidation firm, the firm will get the required debt and finance information from you. The firm then calls your creditors and negotiates on your behalf. These lower rates are pre-set by creditors. Usually, the firm can negotiate lower monthly payments, lower interest rates, and reduce or eliminate late fees. This allows you to pay one, lower bill and pay off your debts in lesser time. In return for this service, you must agree to pay, on time, the agreed upon lower payment while meeting other living expenses. You must also agree to stop increasing your debt or using credit cards. When creditors know that you are working with debt consolidation, they quit harassing you. If they do call, a good firm will usually call them for you and explain the situation.

Often debt consolidation involves many unsecured loans (such as credit card bills) into a single payment but with collateral backing it up. This is then referred to a secured loan. This is not always necessary so do contact a company to look over your individual case. By doing so, a lower interest rate is often available since there is something of value backing it up. If in the case of you not being able to pay back what you owe, then the collateral can be seized in order to pay the amount you owe. All of this can be confusing so it is best to contact a quality company and explain your situation. They will talk to you free of charge with no obligation and provide options as to what they can do for you. From there you can determine what is best suited for you.

Loan Consolidation

Loan Consolidation allows you to simplify the repayment process by combining several types of federal education loans into one loan, so you make just one payment a month. Also, that monthly payment might be lower than what you’re currently paying.

You can get a Direct Consolidation Loan, or a Federal (FFEL) Consolidation Loan, available from participating FFEL lenders. Under either program, the loan holder pays off the existing loans and makes one consolidation loan to replace them. If you have subsidized and unsubsidized loans, they’ll be grouped accordingly when you consolidate so you won’t lose your interest subsidy on the subsidized loans.

There are three categories of Direct Consolidation Loans: Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans. If you have loans from more than one category, you still have only one Direct Consolidation Loan and make only one monthly payment.

You can also consolidate Federal Perkins Loans and other federal education loans. Debt consolidation firms can help guide you as to what the best type of consolidation is for you. If you have loans from private lenders, a debt consolidation firm may be able to negotiate lower interest rates so your monthly payment is less.

Jeni Joe works as financial advisor in Debt Consolidation Loans. He is offering consolidation loan advice for quite some time. To know more about debt consolidation loans, poor credit ratings loans visit http://www.ezconsolidation.com/

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Come out of the debt trap

Come out of the debt trap

By: Caitlin Lucy

Debt trap drains all your existing income and adversely affects your credit rating. The mounting interest burden reduces the fun of life. You find yourself floating helplessly in the deep sea. Debt trap has other serious consequences also. If it is not dealt properly, it may lead to extreme situations like bankruptcy. The best way to come out of the debt burden is to merge the entire debt burden into a single loan. In this case you have to pay a lower rate of interest and have to deal with a single lender.

How to unify the entire debt burden? UK loan market gives you the unique opportunity to come out of the debt trap by merging your debt burden. Debt consolidation loans, as the name suggest, gives you such a platform. You have the option to roll all your loans into a single one where the rate of interest is low. You will find it easier to repay the borrowed amount in easy monthly installments after the consolidation. The amount you avail for the consolidation loans purpose depends upon the nature of the security you pledge.

When you are pledging your home as a security, you can avail an amount as high as 250,000 pounds at a low rate of interest. In this case the payback period is twenty five years. But when you do not pledge your home as security, the maximum amount you can get is 25,000 pounds. Here the rate of interest is a bit high. Debt consolidation loans offer you the unique chance to improve your credit rating. After your credit rating shows a positive trend, you can avail loans at the time of requirement. To get these loans you have to fill up an online loan application form. So do not get late, apply for the consolidation loans options today and come out of the debt trap safely.

Caitlin Lucy is a Expert Author. She has written good quality articles on Debt consolidation loans, Compare Loans and Home Improvement Loans

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