Debt Management Blog

The Debt Dilemma and Refinancing

A "cash-out" refinance, which allows homeowners to refinance their current mortgage and use some of their home equity to pay off other debts, is still one of the best ways to get out of debt fast, especially when interest rates are low. But homeowners with limited equity in their home may need to try other debt reduction strategies along with a home refinance. As home values have dropped around the country, many homeowners find that while they once had 20% or 30% or more in home equity, they now [...]

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Tricks and Tips for Decreasing Debt

Many homeowners look into refinancing a mortgage as a method of debt consolidation, opting to pay off high-interest debt with the equity in their home. But lenders can be strict about "cash-out" refinancing and typically only allow the borrowers to take out a mortgage for a maximum of 90% to 95% of the home value. If you have enough equity to pay off debt and still qualify for a new home loan, a cash-out refinance may be a good solution for your debt problems. Just remember to stay disciplined a [...]

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Credit Report Round Two Could Stop Your Home Loan Approval

Mortgage applicants, particularly when they are buying their first home, often choose to celebrate their excitement over the home loan approval and home purchase by rushing out to buy new furniture or sometimes even a new car to go along with the new home. In todays tightened credit atmosphere, it is best to rein in the spending spree, at least until after settlement. Part of the new Fannie Mae initiative requires any lender that sells its mortgages to Fannie Mae (about 40% of the market for mo [...]

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Should You Try a Debt Management Program?

In an era where frugality is in and a rocky economy has left a lot of families feeling shaky, many consumers are considering two main methods for decreasing debt: mortgage refinancing and debt management programs. For homeowners who qualify, refinancing can be the best option since the result of a home refinance is often lower monthly payments. With less money going from the household income to housing payments, other debt can be paid more quickly. An even better choice for homeowners with subs [...]

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Prioritize your Debt and Consider Refinancing

Personal finance columnist Liz Pulliam Weston, who writes regularly for MSN Money, summarized several debt pay-off plans, suggesting that each individual needs to find the plan that fits her needs. Debt management is a lot like dieting, requiring reduced spending instead of fewer calories, along with extra income instead of exercise. Dieting and debt management both require strong discipline, too. Refinancing Your Way to Becoming Debt-Free If you have debts to pay in addition to your mortgage, [...]

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Refinancing and Controlling your Debt

Homeowners who want to refinance sometimes bump up against two obstacles: first, their home may not be worth as much today, so they lack the equity to refinance. Second, the homeowners may have increased their spending over the years and find themselves with too much debt to qualify for a new loan. Mortgage lenders want to see homeowners with decreasing debt rather than increasing debt, so consumers should look into the possibility of working with a debt management company and receiving credit [...]

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Can Debt Management Improve Your Financial Health?

Debt management (not to be confused with debt settlement) involves restructuring your debts to lower your payments and interest rates. The idea is to help you pay off your consumer debt faster. Debt management typically involves some counselling to help you learn about budgeting, making your payments on time, and managing your bills. Debt management may also involve consolidating your debts with a home equity loan or a personal loan. Lower payments on your consumer debt can make it easier to aff [...]

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Choosing and Using a Debt Management Program

A debt management service acts as a liaison between you and your creditors. They negotiate a single for you, collect a single monthly payment, and distribute it to your creditors. The service charges a commission, usually a percentage of your monthly payment, and may also get rebates from your creditors. How Debt Management Affects Your Credit If your debt management service negotiates reduced interest rates or balance reductions on your behalf, it may show up on your credit record because you [...]

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