A newer type of loan is interest-only mortgage. It features some of lowest monthly payments you’ll find, but this comes at a cost. The payments are low for first few years because you are not paying anything toward loan principal, just loan interest. This means you are not developing equity in your house, and when payments switch to a combination of interest and principal you will see your payment go up.

Summary Obtaining home loans can be intimidating at first, but with a little information and research you can better prepare yourself for loan process. Start by knowing what’s in your credit report and correct any mistakes that appear. Think about type of mortgage that will work best for you and check out several lenders who offer that type. If you’re not sure what kind of loan is your best option then ask potential lenders to make a suggestion. Take advantage of information resources at your local library, on internet and in financial publications such as magazines and newspapers. With some time and effort you will be in a position to make an informed decision regarding a loan.

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When you discover that you have more credit cards then you need, know that this is one of 10 signs you may need credit counseling. You have more cards then you need because you’re trying to pay an existing card with cash advances obtained from other new cards. Another situation that could indicate you need advice of an expert is when you’re constantly charging monthly more than you pay. If this is first sign of financial trouble many people will try to work it out on their own by working overtime or taking a part time job. As we said before, if situation is for a short period of time and you manage to get out of trouble all is fine but if it continues for a longer period this is another sign that you may need credit counseling. Also, if you start getting letters or phone calls about late bill payments, you should be worried at once.

These 10 signs you may need credit counseling do not appear all at once; in time, one after other, they will eventually appear. But it is mostly important to recognize them all, admit you have a problem and ask for help. There are situation in which signs mentioned before appear at a certain moment but person in trouble cannot see them or refuses to see them. More than that, people in financial trouble don’t know how much they owe and don’t want to find out. This is another sign that financial counseling is needed. The situation could get worse in case all this financial problems are not made known to spouse as well. And, sometimes, when trying to hide such a bad situation, people in trouble are using their savings to pay off monthly bills.

The best advice for people that are experiencing this kind of trouble is to not let all signs accumulate. When few of them appear and repeat themselves for a longer period of time, wise people should ask for advice from a financial expert that will surely have few options to get them out of debts.