How Do You Spell Debt Relief?Written by Tim Gorman
Of all problems possible in a marriage, finances cause most marital discord. Many singles consider finances to be their most worrisome issue. Many times this is due to a heavy debt burden. Several options exist to help people get debt relief from their unsecured debts. (Unsecured debt is not linked with a physical asset. Therefore, credit cards and medical bills are unsecured debts; a car loan or a mortgage are secured debts.)
One option for debt relief is bankruptcy. While unsecured debts are indeed discharged, long-lasting black mark on your credit report (up to ten years) makes bankruptcy less than ideal as a form of debt relief. Further, changing bankruptcy laws will make it more difficult to file. Bankruptcy should only be a last resort. It is not a quick fix.
Another option is debt consolidation. Debt consolidation combines your existing loans into one loan. While this does away with late fees and over-the-limit fees, very little is done to reduce amount of debt or to renegotiate interest rates. Further, this uses something as collateral, such as your house. If you still have trouble paying, you could lose your house to foreclosure.
A third option of debt relief is debt settlement. The debt settlement company negotiates with credit card companies to agree to settle for a lesser amount owed, often pennies on dollar, of both interest and principle. A debt settlement company also acts as middleman between debtor and credit card companies, eliminating phone calls that border on harassment. A downside to debt settlement is that many debt settlement companies advise you to stop paying your monthly bills altogether in order to force credit card companies into settlement. While this may work for some credit cards, others may be just as likely to take you to court for non-payment, and debt settlement companies take no responsibility for such action.
Financing a Home With Bad CreditWritten by Carrie Reeder
Financing a home with bad credit is a common problem for people. Over 25% of homes in US are financed through sub prime lenders, who offer financing to high-risk borrowers. While sub prime lenders charge higher rates and fees, through comparison shopping you can find a competitive financing offer.
Check Your History
Check your credit score to know what type of rates you can expect. If you have a score of 600 or lower, a down payment will be required between 5% and 20%. You should also check that information on your credit report is correct.
Place A Down Payment
The larger a down payment, better terms you can secure for financing your home. One of benefits of a down payment of 20% is that you do not have to pay PMI, saving most homeowners around a hundred a month.
Before you begin process of purchasing a home, pre-qualify for a mortgage loan. Determine ahead of time monthly payments you can afford, and then base your home purchase decision on that loan amount. You can also negotiate terms of your loans, especially with a down payment.
Lenders donít charge same rate, so it is best to compare rates and terms. Fees are one of hidden costs of loans, so be sure to add them into total price of loan when comparing prices.