Debt Consolidation Credit Counseling In Phoenix

It has finally happened; you have qualified for a mortgage and now you own your home. Owning a home can be great, but it is now more important than ever to understand foreclosure and what some of the terms are related to foreclosure so you can hopefully avoid it.

Foreclosures can seem complicated since there are so many different terms associated with them. Real estate agents and loan officers might know these terms like the back of their hands, but to the rest of us, it would be easy to get confused when terms start to be used.

Lien holder is another term important to understand as it relates to foreclosure. The lender, usually a bank or credit union, gives you money to finance your purchase of the home. This means there is a lien on the home. In truth, the lien holder has the power to take back the home, or foreclose on it, if you don't keep your contractual obligations.

If a borrower starts to fail to make payments on their mortgage, the lender might choose to accelerate the loan. This can be done because most of the mortgages these days have acceleration clauses in them. This is another term that is helpful to understand. Without an acceleration clause, a lien holder would have to wait until payments were due and then declare the payments were defaulted.

If you are behind on payments, and there is an acceleration clause in your mortgage, the lien holder can decide to accelerate your mortgage and require you pay the full amount or the home will be foreclosed. If there weren't an acceleration clause, technically if you failed to make payments, the mortgage holder could really only hold you accountable for what you haven't paid, not the full amount you owe on the home. They would have to wait until payments became due.

The lender might be able to get a judge to allow them to take back pieces of the land equaling the amount you have failed to pay, but this is a tedious process. It is safer for them to have an acceleration clause so that they can demand the full payment of the loan. Obviously, most people won't be able to make the payment which then allows the lender to foreclose on the home because you owed them the entire amount of the home and didn't pay it.

Foreclosure can seem messy. But knowing some of the basic terms will help you understand it better and understanding just might help you avoid it.

When many people think of debt management, they think of rearranging their budget so that they can pay off debts. But there is more to it than that. In fact, debt management is most effective when it's done before debts get out of hand.

Debt management simply means keeping debts down to a level where they do not present a problem. Those who have managed debt successfully can usually pay off credit card balances each month, and they often put extra money toward loans to pay them off more quickly. They do not take on more debt than they can handle, so they have no trouble paying it back.

A Few Helpful Hints

- Be sure that before you accept a loan you have checked around to be sure that you are being offered a good interest rate. If a lower rate is available elsewhere go with that. Once you have accepted a loan pay as much as you can toward the loan each month.

- Remember that credit card companies are competing for your businesses so that have many incentives and offers that you should avail yourself of. Accept only the credit cards with the lowest interest rate that is available to you.

- Avoid falling into the trap of dozens of credit cards. You don't need a credit card for every store you shop in. Really if you have more than 2 cards you probably have too many.

* Refrain from getting cash advances. These usually carry a higher interest rate than regular purchases. If you need cash in an emergency and must get an advance, paying it back as quickly as possible will minimize the charges.

Are you Already Buried in Debt?

One of the most important aspects of debt management is knowing when you're getting into too much debt. People often do not realize that they're in too deep until their debt has become completely unmanageable, making it much more difficult to get back on track. By recognizing when debt levels are getting too high, you can retain control of your finances.

Considering home refinancing but not sure about how to proceed? This article is for you.

Refinancing your home is an obvious decision if you wish to reduce your interest costs, lower your mortgage payments, or cash out. By "cash out," I mean using your home equity as collateral for a low-cost loan which you can then use to finance other things, like a vacation, a new car, or a child's education.

Here are the three steps in home refinancing:

1. Locate a new mortgage that offers you better terms than your current one.

2. Apply for the new mortgage.

3. Pay off your first mortgage.

Four Caveats

First, note that refinancing is only one of a several ways you can tap into the equity in your home? You may also wish to consider a second mortgage, a home equity loan, or a home equity line of credit. It's a good idea to talk with your broker or lender about these options before going the home refinancing route.

Second, you should realize that there's a big difference in the terms you can get from various brokers and lenders. It's important to not jump too fast. Shop around for your refinancing deal. Yes, you should definitely contact your present lender and give them a chance to keep your business. But also apply through several other lenders as well. Even a seemingly tiny difference in your loan terms (such as a quarter or half point in the interest rate) can amount to a very large difference in your monthly payment or the total interest you pay, or both.

Third, be careful of advertising pitches about refinancing offers that promise extremely good terms. Usually, these pitches are applicable only to people with excellent credit scores (700 or above). In any case, home refinancing is a decision you should make based completely on whether it will be financially beneficial to you, not on what deals are out there at any given time.

Fourth, beware of prepayment penalties. Does your present mortgage have a prepayment penalty built in? This could render refinancing uneconomical. Research this out before proceeding. And try to avoid agreeing to any such penalties in your next mortgage.

The Basics of Refinancing

You'll soon discover that refinancing is not a lot different from the experience you had in getting your original mortgage. You'll have to jump through most of the same hoops all over again. Your goal, presumably, is to get a significantly better deal the second time around. For this you'll need one or more of the following:

-A higher income than you had when you applied for your first mortgage -A higher credit score -A substantial build-up of equity in your home -A history of on-time mortgage payments

Unless you can get a better deal, forget it. You will probably incur substantial closing costs in refinancing. Unless you can recoup the costs of refinancing, and do so quickly, it's usually not in your best interest to refinance. (An exception would be if you absolutely need to lower your monthly payments, even if it costs you some money to do so.)

Notice, however -- and this is a point a lot of people miss -- it's not always necessary to get a lower interest rate. You may be able to get a better deal by switching to a different kind of mortgage, such as a variable interest mortgage, or maybe you can extend the term of the mortgage and thereby lower payments.

Understanding the Complexities of Home Refinancing

The Internet can help a lot in unraveling the complexities of refinancing. Financial calculators are widely available which can help you crunch numbers and quickly figure out how long it will take you to break even -- i.e., recoup your loan costs -- for a given mortgage. You can also check out mortgage rate data nationwide and get referrals to lenders and mortgage brokers nationwide.

One of the better websites for researching refinancing deals is Bankrate.com, which is the Internet's leading financial rate information website. But in addition to any research you do at Bankrate.com, it's also a good idea to discuss your specific situation and financial goals with a reputable lender/broker before signing for a new mortgage, which, after all, is one of the most important decisions of your life.

You'll need to sit down and calculate exactly what terms you must get in order for a home refinancing package to be beneficial to you, given your specific goals. There are, as I said, financial calculators on the Web which can make this reasonably painless. One is at Home Finance.

Let's assume for example you now have a $200,000, 30-year, fixed-rate mortgage at 7.25 percent. Given this situation, your monthly payment is (as the financial calculator shows) $1,364.35 and the total interest you'll pay over the term of the loan (30 years) is $291,166.

Now suppose you receive an offer from a lender for a 6.75 percent loan for the same $200,000. That's just a half a point lower than your current mortgage. However, the financial calculator reveals that your monthly payment would drop to $1,297.20 and the total interest you'd pay would drop to $266,992. So you'd save $67.15 per month and also $24,174 in total interest paid in 30 years.

The question is, Would this amount of savings be worth the time, effort, and cost of refinancing? For most people, probably yes.

Of course, to benefit in this way, it's not necessary that general interest rates decline. You may be able to refinance and obtain a somewhat lower rate even if rates have held steady provided your own credit standing has improved or you've built up a good deal of equity in your property. Another possibility is to take out an adjustable rate mortgage that offers lower rates. This need not involve greater risk. Suppose you plan to move in three years and you can find a mortgage whose interest rate is fixed until the fourth year, at which time the adjustable rate feature kicks in. Then you don't really care -- you're selling the property at that time anyway.

Paperwork You Should Prepare For

Remember the big paperwork hassle it was when you took out your first mortgage? The second will be a repeat performance plus one or two additional irritations. But if you prepare the documents you're going to need to get the loan ahead of time, the hassle will be greatly reduced. Here's what you'll need --

- All the following: the current value of your home (the lender will arrange an appraisal to verify your estimate); amount owed on your mortgage; terms of your mortgage, including interest rate; your credit report and credit score

- Pay stubs from at least the last month

- W-2 forms for the past two years (or, alternatively, tax returns for the past two years if you are self-employed)

- Bank statements for the past two months (three months is even better)

- IRA and Investment account statements for the past two months

- Copies of your present mortgage documents which you received at the closing

Here Are the Main Points to Remember about Refinancing

-You should refinance only if it makes financial sense, given your particular goals. Most people's goals involve one or more of these: obtaining a lower interest rate, shortening or lengthening the duration of the mortgage, cashing out the equity in the property.

-Always shop around for the best deal. The Internet can help a lot here.

-Do the numbers. Use financial calculators to figure out what your break-even point is given various financial scenarios. Bankrate.com is a good source for these tools, as well as much additional information.

-Remember that most refinancing ads are targeting unusually credit-worthy individuals (those with credit scores above 700). Average consumers usually won't qualify for the great deals they're promoting.

-Never focus entirely on the interest rate or the monthly payment. You must also figure out the fees involved. When comparing the refinancing deals offered by various lenders, always focus on the loan's APR, which reflects the total cost of the loan.

-Today, much or all of your home refinancing-deal comparison shopping can be done via the Internet. It's no longer really necessary to personally visit banks and other lenders, unless you are more comfortable doing it that way.

There are innumerable refinancing businesses on the Internet. Spend some time researching them to find the one likely to be of most benefit to you.

A debt negotiation is different from the credit counseling or the debt management plan. It can be a very risky decision and if not handled well can create a long term negative impact on your credit report. As an end result, it can hamper your ability to get credit in the future.

Debt negotiation agencies claim that they are actually nonprofit. And that they can arrange for your credit card debt. With such an ambitious claim, it even further assures you to pay off for anywhere from 10 to 50 percent of the balance owed.

To exemplify, a credit card debt amounting to $10,000 can be handled by a debt negotiation firm. By claiming it can arrange for you to pay off the debt with a much lesser amount like $4,000, you will likely think that this is too good to be true.

The debt negotiation firms often pitch their services as a better alternative than bankruptcy. They even assert that their way is the best for you to save yourself from bankruptcy.

Debt negotiators assure you also that their services will have little negative impact on your ability to get credit in the future. In the event that you have a negative rating with your credit score, they always guarantee that this negative information can be removed when you complete the debt negotiation program.

Debt negotiation is actually the process of negotiating with a creditor to pay off just a percentage of your unsecured debts like credit card balance.

Since this process is commonly used in debt arbitration, this type of solution to get settle debt is often in the best interest of creditors to negotiate appropriate debt repayment schedules. With debt negotiation, the firms usually tell you to stop making payments to your creditors directly. You send the payments instead to them as the debt negotiator. The firms then promise to put your funds in a special account and pay the creditors on your behalf. With most of their clients experiencing hardship, debt negotiators could be the final hope.

Only be wary with using this process though as many states have laws regulating debt negotiation companies and the services they offer. Their claims might just be an exaggeration and a false hope for your part. It always pays to check the fine print and do your homework.

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In this day and age there are a lot of students who can't qualify for a regular loan due to having bad credit. But do not worry because there are other options available to you so that you can still go to college and get a better job.

If you haven't tried yet then it is time to go to your family and friends and try getting a co-signer on your loan applications. Having a co-signer gives the lenders another person to rely on to make sure that they get their money back. If your family wants you to go to school then it is only fair that they help you to get in and pay for it. If you get a great job when you are done then you will be able to pay them back alter.

Once you are able to get a good co-signer the student loan applications should go fairly well and you will likely get approved. One of the great benefits aside from being approved is that you will get a very low interest rate as well.

After looking for a co-signer your next step should be to contact several banks and student loan companies. Many of them have divisions that deal specifically with students with bad credit. While the terms of the loan will likely be less then ideal, the option is there and you should look into it.

This isn't as bad as it sounds however. Since college usually takes four to five years you will have time to rebuild your credit history and when it is time to pay off your loans you can likely refinance them at a lower rate. And since you will have a better job it will be that much easier.

Another option at your disposal is to apply for a combination loan. Combo loans allow you to consolidate your existing debt and then apply for one big loan to pay all of it off. Most of the time consolidating loans will help you pay a lower monthly rate as well as pay on time. If you qualify for a combo loan you can usually go to school and repair your credit history.

In case you missed it you should also apply for Stafford and Perkins loans. They are usually relatively easy to get if you have financial need. They are great because they usually have low interest rates and if you meet the qualifications then you will get it.

So don't be shy and register for every possible loan and grant. You will get denied on several but you only need one or two to go to college. In fact if you really want to go to college and yet you have bad credit you should search online for scholarships and grants. There are literally thousands of options available to you and many that go unused each year. If you don't mind filling out some paperwork you may be able to go to school at no charge.

A debt management plan is on of the methods used for paying personal unsecured debts. This usually involves taking note on all the debts, assessing income versus a budget, and negotiating lower interest rates.

A debt management plan also incorporates in the plan the schedule of payments with the lenders. With a guided debt management plan, the interest is best achieved with the end of the lender to collect all the debt. This is due to the well-studied evidence projected by your counselor to your lenders that there will be a higher likelihood of collection due to the more realistic monthly repayment from the debtor.

A debt management plan is best suited for individuals who acquired certain credit card debts which were taken to the level where they have already no control with. In this situation, the client have already late payments and the amount due are taking a huge part of income or even exceeding it. If the above mentioned situation is very familiar, your financial problems are probably stemming from your inability to repay your credit card debts. It is then recommend that you enroll in a debt management plan.

Consult your certified credit counselor and spend some time discussing with him or her possible pros and cons of enrolling yourself with this plan. Only sign on those plans after a thorough analysis of your financial situation and you are prepared to follow the plan strictly.

Here is a warning before you get started with the debt management plan. When someone participates in a debt management plan, the probability that the credit rating will most likely be damaged is very high. But it is not the debt management plan per se affecting the credit rating. It is rather the inability of the debtor to meet with their contractual payments they signed before getting that credit card. These details will be recorded on their credit file in the form of a default notice, thus leaving a negative impact on their credit report.

Before deciding on these plans, ask yourself first. Is debt management plan really for me? I hope you are guided.

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Having a homeowners insurance is mandatory by law if you have a mortgage. Denver Home Insurance is critical to protection of your most valuable possession. In current economic difficulties many people lapse on their coverage, but it is absolutely necessary to keep your homeowners insurance current.

This is not to be a pain in the side to the homeowner but rather to make sure that their investment is protected. If your home caught fire and there was no insurance coverage in place, then there would still be a mortgage yet no home. This poses an extreme problem for the mortgage companies as they would not have anything to foreclosure on or gain back if the customer was not able to continue paying on the loan.

This is the reason mortgage companies will make homeowners take out Denver Home Insurance. Some mortgage companies allow you to escrow the amount, paying little extra each month on top of the mortgage payment to spread out the premium payments. Which can be better options, but the premium might be twice as much as if you purchase by yourself.

The advantage is your don't have to pay the whole premium up front, it makes making payment in installments lot easier. But many homeowners either let the insurance lapse or do not pay the premium. This is a grave mistake you want to keep your homeowners insurance current. Make sure the payments are made in timely matter.

If you have decided to pay your Denver Home Insurance on your own then you are going to have to make sure that you pay it on time every time. Allowing your coverage to slip will have extremely expensive consequences. Once your mortgage company learns of the lack of coverage, they will place their own coverage onto your monthly payments.

Whether the mortgage holders place a insurance or you purchase the insurance, it is a wise move to carry enough coverage, so the damage will be minimized on your finances. Don't get caught without one, you rather be safe than sorry.

Mortgage Bad Credit loans are becoming more and more popular among individuals who lack the appropriate credit score to get a regular loan.

In these times of economic instability all-around the globe, it is ordinary to require additional money to lay out bills, your car imbursement, to spend for the long weekend, make home improvements, and more and just not have it.

If you have bad credit, you can get the money that you require for the goods that you would like to earn with mortgage bad credit loans.

There are several various kinds of lenders that are available that could help out build your economic dreams come true. These lenders actually focus in mortgage bad credit loans.

Mortgage bad credit loans are pretty simple to know. Principally, you request for a lending and you are accepted if you place the house that you own up|haveconfess for collateral.

Now, the loan is relatively simple to obtain for the easy detail that you put your house on the line, but mortgage bad credit loans are recognized to carry a high interest rate. If you are in urgent need of financial support , this type of loan may seem appealing to you.

However, it is important to ensure that you have the financial backing to make the payments that are necessary. If you fail to do this, the mortgage bad credit loan could cost you your home!

The term "bad credit" does not mean no credit. It actually means that any credit you may be able to get is at a much higher cost. Because you may have been through some tough times financially in the past results in astronomically high rates of interest. But rest assured that there are ways that you can "repair" your credit.This article will address three of these, the best for you depending upon how extreme your circumstances are.

Your problem: Your credit report contains information that is just wrong. Method #1: Contact the credit bureaus and make enquirers.

You have asked for a copy of your current credit report from each of the three credit bureaus. You discover, to your horror, that there are some entries made by past lenders that are negative. This could be a mistake on their part, for example, it may state that you still have an outstanding amount on a loan when you know that the loan has been paid off - and you have actual proof! A well-constructed letter to the credit bureaus, including your evidence, should take care of this problem.

Problem: You have a number of overdraft fees. Method #2: Choose your bank carefully.

Multiple overdraft fees on a checking account are a source of discomfort on their own. If the credit bureaus discover that you have them (usually the bank will tell them), it will make things worse as it will damage your credit rating. It is an unfortunate fact that it is far too easy to withdraw more money than you may have in your account from an ATM. If your bank offers "bounce protection", they then manage to obtain another overdraft fee from you at around $20 to $35 each time. No wonder that they encourage you to take out this protection!

We all know that the wise thing to do is to check your account before you withdraw any money, but because we are always in a rush, that very rarely happens. To avoid this problem, you should use a bank that doesn't have the "bounce protection" as an automatic addition to accounts, so that, if you don't have the money in your account, the ATM won't give it to you! This will help you avoid those dreaded overdraft fees.

Problem: Low ceiling on your line of credit Method #3: Obtain a sub-prime merchandise card.

Financial problems such as poor credit history in your past are interfering with your chances of obtaining credit for the future. Life becomes more difficult if you cannot even find someone or some institutions that grant consumer loans.

The most effective way to boost your line of credit without crippling yourself financially is to obtain a sub-prime merchandise card. This is a card that allows you to purchase items from one merchandiser, which is usually the one from whom you purchased it, through a line of credit. You are asked to pay a deposit on items you buy with the rest being put on the card.

The sub-prime merchandise card has the advantage in that it tells the credit bureaus that you have a new line of credit, which in turn reflects positively on your credit report.

Getting a business loan is getting harder by the day. The recent financial meltdown has been a big scare for banks, and they are not particularly eager to hand out business loans to small business owners. So if you're not bailed out by the government, you'll have to know how to still get a business loan.

Your request for a business loan will be carefully screened by a bank employee. They will want to know if you have the income to support the loan, if you have stability and if you have collateral.

Collateral is one of the most important factors if you want to get a business loan. The ideal situation is to prove to a bank that you don't need the loan. But then, why would you apply for a business loan if you don't need one? That's when planning and preparation come in handy.

If you want the bank employees to seriously consider your application for a business loan, it's going to cost you some preparation time. Always make sure that you have the correct numbers, that you use every smidgen of proof you're trustworthy and that you can back it all up with logical arguments. Also, it's worth it to take the trouble of putting on a suit. If you want to appear trustworthy, at least look the part. This is more important than most people think.

Even in a bad climate for business loans, you can still get one if you do the preparation. Planning greatly increases your chances of success for a business loan.

Protect yourself with credit counseling agencies! That's the main concern right now with the financial meltdown. With your hard earned cash, it is time to only trust with a legitimate and the sincerest credit counseling service you can find. Always be careful with credit counseling organizations that charge high monthly fees, or even excessive upfront money, just for enrolling in their credit counseling services or a debt management plan.

Most so called non-profit organizations will likely pressure you to give voluntary contributions. Be wary as these are just another name for their fees. Others will not send you free information regarding their services without you to providing personal financial information such as credit card account numbers. These companies have high motive at the very beginning and these are signals for red flags.

With the haste of making you commit with their service, some companies will just simple recommend to enroll you in a debt management plan without spending a good amount of time reviewing your personal financial situation. This can have certain consequences on your credit report and you have to protect it yourself. The companies don't mind about your financial situation, but you should.

As one of the requirements before enrolling in a debt management plan, ask a counselor to teach you budgeting and money management skills. If the company or the counselor refuses, you refuse their service right away too. In addition to a free information that are valuable, companies should never demand immediate payments from you into a debt management plan. Much more if they demand payments even before your creditors have accepted you into the program. Run as fast as you can if they do, they are only after your money.

Personal bankruptcy can be long-lasting and far reaching. Thus, it is generally the last option in your management of your debt. As a last resort, do not let your credit counseling agency make your route to bankruptcy a little faster than you thought. At this time when you are seeking their help, you only should trust companies that truly care for you and those that will help you with your troubles.

Play your cards well; let them build first a relationship with you. It is their responsibility to do so as it is their business. Talk to them in person. Ask for free information and let them present to you their service. From their words and actions without you paying first, you will know if they can be trusted.

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Secured debts are tied to an asset like a car loan. If you stop making payments in this situation, lenders can repossess your car. This also applies with your home loan. On the other hand; unsecured debts are not tied to an asset, including most credit card debt. Because of this risk, most unsecured debts especially with credit card companies are very aggressive with the debt collection. They even offer free credit counseling to educate clients with their debt repayments.

When having trouble making ends meet, contact your creditors immediately. Tell them the reason for your current hardships and why it is difficult for you to pay your debts. Try to work out with them a modified payment plan. This move will likely reduce your payments to a manageable level. Most lenders, to your surprise, are actually willing to work with you if they think you are acting in good faith and the situation is just temporary.

Never ignore this situation and let your accounts be turned over to a debt collector. With your account in the debt collection list, your creditors have already given up on you and the worst is yet to come.

With debt collection, the Fair Debt Collection Practices Act is the federal law that regulates how and when a debt collector may communicate with you over your financial obligations. As stated in the Act, a debt collector cannot call you before 8 a.m. and after 9 p.m. In instances where you specified before applying for that credit card that your employer doesn't approve of any calls while at work, your debt collector cannot call you too.

Collectors are prohibited from harassing you or using unfair practices when they try reaching you to collect a debt. In addition, they must also honor a written request from you when you wanted them to stop the further calling.

At the end of day, you should always be vigilant for your name not to be blacklisted with the debt collectors. It certainly has its negative impact with your job later, your credit in general, and your reputation Take the responsibility to pay your debts as soon as you can. Debt collectors are just doing their part; fulfill your part as well.

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