My Personal Finances and Debt Settlement

Do you have Credit Card Debt of More than $5,000?

“A budget is just a method of worrying before you spend money, as well afterward” Anonymous

The major question, you need to ask yourself can I work within a structured budget to get me out of my financial mess? If the answer is yes, then a debt settlement program may be right for you at this time.

By using a debt settlement program, you will be to stop the endless cycle of making only the minimum monthly payments on your credit cards and making no headway on your balances. This program has you saving a percent or set amount each month and as that balance grows, it allows the settlement process to being.

Here is an example:

As any example, if your current monthly minimum payment are at $750 and this is a struggle but you could pay $450 a month. Then it would take approximately 12 months to become debt free using a debt settlement program. Does that see too easy. Will it’s not! It will require a stead fast need to save and control your current spending. But by choosing a debt settlement program, you will be free of the constant worry of how do I pay my bills on time and get myself out of debt.

As you can see from the chart, you could be able to settlement for almost half of your outstanding credit card balance. You need to ask yourself, how long would it take to off of my credit cards by myself? If you make only the monthly minimum, you a basically paying only interest and very little principal. So it could take you more than 8 years to paid off your debt verses using a debt settlement program.

You have already taken the first step in recognizing the need and that there are debt settlement programs such as Debt Negotiation Zone that have specialist waiting to assist you. Call today 866.96.3.9988.

Con 1 - The creditor who lowers or completely stops charging you interest will most likely freeze your account or even close your account so you can’t use it once you are in this program. This will happen even if you had been paying them perfectly before. You being in the program suggests to them that you are in trouble. It does not suggest that you are getting help and that they should be considerate of that.

Con 2 - Being in credit counseling is marked on your credit report. Each creditor who you include in your program will probably note on your credit report that you are in credit counseling. Most often I have seen it noted something like: “Customer in CCC”. This notation supposedly doesn’t hurt your credit score, but it definitely will impact someone who reviews your credit report looking to make a decision about giving you credit.

Con 3 - If you are trying to get a mortgage, some loan programs won’t allow you to qualify if you are in the program. The viewpoint on credit counseling has gotten better over the years, but in some cases, in terms of loan qualification, being in credit counseling is looked at just as bad as bankruptcy. Again, this doesn’t seem quite fair as you put yourself into credit counseling so you could pay your debt, make things right, and avoid going bankrupt. Go figure.

Con 4 - This is only a problem if you don’t start the program correctly. When you are going to start a credit counseling program it could take several months for the program to be set up to start paying your creditors. You must make sure that you continue to pay your creditors until your payment plan starts. If you don’t make sure these bills get paid and you had good credit your credit will suffer dramatically.
Only You Can Decide

Fannie Mae will be giving homeowners loan modification help.  DU Refi Plus will allow a homeowner to refinance their existing mortgage up to 105% of what the property is worth.  If you are upside down more than this on your home you may be out of luck.  You should still talk to your bank or mortgage holder to see if you can get a loan mod from them.

How Do I Qualify For A Loan Modification with Fannie Mae?

1.  You cannot get cash back of more than $2000.

2.  You can only redo a first mortgage.  You cannot pay off the balance of a 2nd mortgage.

3.  You cannot get a fannie mae loan mod with DU Refi Plus if you have an interest only loan.

4.  No refinancing of MyCommunityMortgages.

5.  No Balloon Mortgages.

6. No arms with fixed rate periods of less than 5 years.

Contact a mortgage loan officer to see if you can get a loan modification with the DU Refi Plus.