Credit and debt issues are critical life altering realities for almost everyone. The daily decisions we make in handling balance between two determines our credit worthiness in eyes of financial institutions. As we all know, if you have a bad credit rating, then borrowing funds or purchasing many items will become difficult or impossible. But what happens when you get so far in debt that you have no clear way to pay it all off? Many people resort to a debt management plan (DMP). These are payment plans structured in a way so that borrower is better able to pay off their debts, and is agreed to by borrower and creditors. The benefits can include lower interest rates and fee waivers.

Once you and creditors have accepted DMP, it is important to:

• make regular and timely payments • always read your monthly statements to make sure your creditors are getting paid according to your plan • contact organization responsible for your DMP if you will be unable to make a scheduled payment, or if you discover that creditors are not being paid

If payments are not made to your DMP and creditors on time, you could lose progress you’ve made on paying down your debt, or benefits of being in a DMP, including lower interest rates and fee waivers. The creditors may not forgive any more late payments and you will incur more 'late' marks on your credit report as well as more late fees, increased debt and a longer pay off period. So, once you are on a debt management plan, make sure that you are never late on any payments.

“She was trying to utilize equity in her home to remodel and add a bedroom to make it more comfortable for two teenage and two newborn children her and her husband care for.”

“For their situation I decided that a Pay Option mortgage loan program would give them cash flow needed to cover shortfalls. It also lowered their mortgage payment over 1500 a month,” continues Rees.

A Pay Option Mortgage Loan allows complete flexibility to decide, every month, which of four mortgage payments you would like to make.

This program is ideal for anybody that has fluctuating income such as self-employed. Pay Option is also an excellent choice if you are looking to buy a new home and want lowest possible monthly payment, or if you simply just want to lower your existing mortgage payment.

The Pay Option Mortgage is a relatively new product that allows you four payment options each month.

1. 15 year payment- Pay your loan off and build equity faster as well as save thousands of dollars in interest

2. 30 year payment- This option will let you know how much to pay to have your home free and clear in standard thirty years

3. Interest only option- This option allows you to pay only interest portion of your monthly payment so you can increase monthly cash flow

4. 1% Minimum payment-This option allows you to pay your mortgage at a 1% rate of interest for maximum savings