by: Charlie Essmeier
Problem debt is rampant throughout America. In addition to mortgages and auto loans, the average household in the U.S. has nearly $10,000 in credit card debt. As the major credit card companies have recently doubled their minimum payment requirements, now is a good time to outline the various options available to most consumers who have more debt than they can handle.
# Stop spending money on nonessential items. ?Nonessential? is difficult to define, but it more or less means anything that isn?t absolutely necessary to live. Phone bills, mortgages, and groceries are essential. Lattes at Starbucks, satellite television, and meals from fast food restaurants are not. By cutting out all extra spending, you can probably save several hundred dollars per month. That money can be used to reduce debt.
# Consolidate your debt. If you have more than one credit card and your accounts aren?t all at their limit, you can transfer balances from higher-interest accounts to those with lower interest accounts. Alternatively, if you own a home, you probably have accumulated some equity. You can obtain a home equity loan or line of credit and transfer some of your debt to that loan. As a bonus, the interest on home equity loans is tax deductible. Be careful, though. If you transfer your debt to a home equity loan, you can lose your home if you do not repay it.
# Find a reputable credit counselor. This will soon be a prerequisite to filing for bankruptcy, thanks to a recently passed Federal law. Counseling agencies can negotiate with your creditors to help you establish a repayment plan that you can afford. They may be able to have interest rates reduced or have late fees waived. Most agencies charge for their services, but the reputable ones limite their fees to what you can afford to pay.
# File for bankruptcy. This is not a decision to be taken lightly, as a bankruptcy filing will remain on your credit record for ten years. By filing for bankruptcy, you declare to the courts that you cannot repay your debts. Most consumers are currently allowed to file under Chapter 7 of the Federal code, which allows the courts to wipe out most debts. This will change this fall, as recently passed Federal legislation takes place. The new regulations will likely require a repayment schedule, and attorney, and higher filing fees. Bankruptcy can help you get a fresh start, but it?s not a magic solution. It will be quite difficult to reestablish credit after a bankruptcy filing
Having more debt than you can handle is a serious problem, but like most problems, it is one that has available solutions. The first step is to act promptly, as unattended debts only grow larger. With time, patience and diligence, most consumers can overcome the burden of excessive debt.
About The Author
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling.
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Private Mortgage Insurance Doesn't Protect Homeowners
Private Mortgage Insurance Doesn't Protect Homeowners
by: George Burks
If you borrowed more than 80% of the appraised value of you home, you're probably paying private mortgage insurance (PMI). PMI that is not lender paid is a waste of money. If you default on your mortgage, the private mortgage insurance provider will pay the lender, but you still would lose your home. PMI do not offer you any benefits whatsoever. PMI payments aren't even tax-deductible.
PMI increases your effective mortgage interest rate. On a $100,000 loan with 10 percent down ($10,000), PMI would cost you $43 a month. If you can cancel the PMI, you can save $516 a year and many thousands of dollars over the course of the loan. If your down payment was less, the cost of your PMI will be greater. If your down payment was 5%, ($5,000), your PMI expense would cost you $780 a year or $65 a month. Check your annual escrow account statement or call your lender to find out exactly...
Private Mortgage Insurance Doesn't Protect Homeowners
Mortgages > Private Mortgage Insurance Doesn't Protect Homeowners
What are VA loans?
What are VA loans?
by: Mark Lambie
VA loans are basically mortgages or home loans geared towards ex-military servicemen and women.
The VA loan programme was created in 1944, and was initially known as the Servicemen's Readjustment Act, to help returning servicemen settle down and purchase their first home.
There are, on average, over twenty-five million American who complete their military obligations each year.
You are eligible for a VA loan if you are veteran who has been honourably discharged.
The eligibility requirements vary, depending upon whether you served full-time or in the reserves, so check with your lender.
A VA loan will generally guarantee around 25% of
the total home loan, up to $89,912.00.
VA loans are often made by a variety of lenders, such as banks and savings and loans institutions.
These loans act more as protection for the lender against loss at...
Mortgages > What are VA loans?
Your Home Equity Credit Lines
Your Home Equity Credit Lines
by: Troy Francis
Do you need to borrow money? Home equity lines may be one source of credit. Home equity credit lines may provide you with large amounts of cash at a low interest rate and they may provide you with certain tax advantages
with other loans.
Home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this credit line, or they may put your home in jeopardy if you cannot qualify for other refinancing. If you sell your home, most plans require you to pay off your credit line at the time of closing. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more often.
Remember too, there are other ways to borrow money from a...
Your Home Equity Credit Lines
Mortgages > Your Home Equity Credit Lines
HELOCs and Second Mortgages: Which One Should I Choose?
HELOCs and Second Mortgages: Which One Should I Choose?
by: Mark Lambie
Whether you need some extra cash to pay off some credit card debts, or to make some home improvements, home equity lines of credit or second mortgages can be great ways to get started.
Many people looking to borrow money often opt for home equity line of credit, or HELOCs, for short.
They are a tempting first choice, because they can often give you the much needed cash at a low interest rate.
Another advantage to taking out an HELOC, or a home equity line of credit, is that they may provide the borrower with a certain tax break, but you would need to verify this with your lender or accountant.
One drawback to HELOCs, however, is the fact that borrowers are expected to put their homes up as collateral.
So, it is important that you think this decision through, before finalizing the loan, because you may be at risk of losing your home-...
Mortgages > HELOCs and Second Mortgages: Which One Should I Choose?
While Visiting Paris -Top Tourist Attractions for Weekend Getaways in Paris
While Visiting Paris -Top Tourist Attractions for Weekend Getaways in Paris
by: Fionn Downhill
As the second largest city of Western Europe, Paris is known as the City of Lights for its well-lit displays in the late hours, which calls to visiting tourists from around the world. It is the home of the Eiffel Tower, the Louvre and many more vacationer attractions.
What can you see in a weekend in Paris? If you?re visiting Paris for only a short while, try...
hotels Mortgages While Visiting Paris -Top Tourist Attractions for Weekend Getaways in Paris
Mortgages > While Visiting Paris -Top Tourist Attractions for Weekend Getaways in Paris
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