| If you're in trouble managing multiple bills, you may | | | | loan payments and falling behind," said Scott Tennell, |
| replace all of them into a single debt consolidation | | | | Vice President, Florida Mortgage Professionals |
| loan payable at a low rate of interest. Or another | | | | Association. Filing chapter seven where a person can |
| way of doing this is through what is called loan | | | | walk away from all debts does not include any |
| modification. | | | | money owed to Uncle Sam including student loans |
| Make a list of all of your current bills, including | | | | and taxes owed. Banker is not nearly as |
| department store debt, mortgage or rent, car | | | | accommodating as Uncle Sam and will require that |
| payments and insurance, utility bills, food and | | | | the recent undergraduate degree holder have a |
| entertainment and any other expenses that you can | | | | co-signer for approval along with at least two |
| think of for the month. Benefits may include | | | | references. This kind of debt cannot generally be |
| reduction in interest rates, lower monthly payments | | | | included in any kind of consolidating effort. |
| and stopping late and over-limit fees. A credit | | | | Another source of funding can be found in the |
| counseling program typically lasts for about five and a | | | | private student loan. The purpose is to make sure |
| half years. | | | | that you can make payments on the consolidation |
| Loan modification can take a number of forms | | | | loan in addition to repaying your monthly bills and |
| including converting an adjustable-rate mortgage to a | | | | expenses. |
| fixed-rate mortgage, extending the term of a loan | | | | This is because the interest on a personal loan is not |
| from 30 years to 40 years, reducing the interest rate | | | | tax deductible just as the interest on a mortgage |
| and temporarily deferring payment of some, or all, of | | | | loan. There are a variety of features that a borrower |
| the principal. Otherwise, you won't be able to save | | | | may want to look for when they seek a bill |
| dollars. Over time, your improved score will give you | | | | consolidation company. If the percentage of a |
| access to a number of more favorable loan options. | | | | person's monthly income is more than forty percent |
| Using debt consolidation loans, you can pay off all or | | | | loaded with credit payments, including school loans, |
| most of your unsecured bills (credit cards, payday | | | | even if the bills are paid every month on time, the |
| loans, medical bills etc) at once. | | | | credit score will be affected. Whichever you would |
| If you do seek debt consolidation as an answer then | | | | decide whether a debt consolidation loan or a loan |
| you will have to understand that you can negotiate | | | | modification, make sure to your home work and |
| the terms of the consolidation. "For many mortgage | | | | avoid the pitfalls when you modify or consolidate |
| holders, a simple loan modification means the | | | | your debts. |
| difference between comfortably being able to make | | | | |