Archive for December, 2010
Making the decision to refinance your home is a big one. People refinance for various reasons but in the end they are looking to accomplish the same thing. Put more money in their pocket, consolidate their high interest credit cards or make one easy payment instead of several.
Regardless of your reason, you have made the decision to refinance and now it is time for a little legwork. First off, before you make any decision, you need to make sure you have done your homework and done it thoroughly. A few things for you to take into consideration are; how much are you looking for? What is your credit score? And how much can you afford each month?
The easiest way to answer those questions is to list out what you monthly bills are, make a total of what you pay out each month and what the balance of each debt is. If you want to find out your credit scores you will need to request a copy of your credit from each of the three credit bureaus. By requesting one from each of the bureaus you can be sure that you are getting all the information. It is important for you to know that every creditor has their own way of reporting and that may not include reporting to all three bureaus.
Once you have established your credit score, you may find there is some misinformation listed for you. Now is the time for you to begin to improve it. You can dispute any information listed that is wrong. In order to do this though you will need to write the credit bureau a letter explaining why you are disputing the information. This process may take some time, but your credit sore is worth the effort.
Your potential lender will look at your debt to income ratio. What this means is there is a standard of how much debt you are allowed in order to qualify for a loan. If your debt is more than your income, then obviously you would be looked at as a high risk. By showing your debt to income ratio you are simply letting the lender know that you have the ability to repay the debt as outlined in the contract.
Something for you to consider when refinancing you home is the interest rate. If you are refinancing look to make sure you will be gaining on your debt instead of sinking deeper. The whole idea of a refinance of home mortgages loans are to improve people’s financial situation, so make sure the company you choose has your best interest in mind.
An important thing for you to take into consideration is, overall, is it worthwhile for you to refinance. Sometimes the effort it takes to get the refinance with bad credit can be more time consuming and more costly than it is all worth. The only time it is worth it is when you can improve your situation.
No more mountains to climb to get the help you need. By making wise decision today when it comes to your finances you can be saving yourself from a lot of grief tomorrow.
When you find yourself waking up with that sinking feeling of never getting ahead, it is time to do something about it. You may feel like you can’t do this alone, but you can and you do have options. Once you have made the decision to improve your debt situation, be prepared. It will take some hard work on your part, but in the end, you will find it is well worth the effort you put into it.
The first thing you need to do is to list out all your monthly debt and the totals you owe. This can help put a clear view on your finances and how much you can afford. The important thing for you to remember is that you need to be realistic. It is entirely possible to reduce your debt by anywhere from 40 to 70 percent and be totally debt free with 3 to 4 years. Remember, the credit card companies want their money and they are willing to work with you to achieve that goal.
When facing your debt without the help from anyone can seem a little overwhelming. If you take things one at a time, it can be manageable. The first thing you need to do is to prioritize you debt. Decide an order of how you would like to pay each debtor. Then begin to make the phone calls. A company you owe a debt to is more likely to work with you to get, at least, part of the money, than to be forced to write off the total amount. By contacting the person that gave you the credit you are showing them you are willing to pay, you just don’t have the ability to pay it all on the term they want. They will give you some options and may even reduce your balance. By the time you have reached the end of your list you will be surprised at the amount of money you are saving yourself. Another advantage to doing the negotiations yourself is that you will be saving yourself the fees that a debt consolidation company will charge and in the end get you close to the same results you can get yourself.
Doing it yourself is not for everyone. Some people would rather let a debt consolidation company do the negotiations for you (or just apply for debt consolidation loans instead). Let’s face it; some people just don’t have it in them to negotiate anything. I for one am one of those people. By using a debt consolidation company, you can deal with one person, giving them all the information they need regarding your current situation. In turn, they will charge you a fee and they will contact all your creditors, negotiating a payoff. So all you have to do is to write one check to the debt consolidation company and they do the rest. This saves you a lot of time and headache. Make sure, if you decide to go this route that you check into the company you are dealing with. Some companies are less than reputable and can cause you a bigger problem with your credit than when you started.
Whether you do it yourself or have a debt consolidation company do this for you, it can be done. Managing you debt is something we all have to face at some point in our life. The important thing in all this is to make sure you mange it correctly. Simply walking away from your debt is never a good option.