Your Debt Management Options

It happens to almost everyone at some point in their life. You sit down to look at your finances and realize that what you make verses what you owe has just stopped adding up. Don't give into the stress quite yet. You may still have some options to help you manage your debt.




First, try calling your creditor to request a smaller interest rate. If you have done a great job paying on time for the life of your account with them, most companies will consider bring your interest rate down a point or two. This may not alleviate your monthly payment costs but will cost you less overall in the long run.




Next, try calling your creditors to negotiate a smaller monthly payment that can fit your budget easier. Most companies understand that life is unpredictable, and so will work with you to set up a smaller payment that will work with your finances. They may only agree to this lower payment for a specified amount of months, but this will still do wonders to alleviate some of the pressure behind your debts.




If your creditors are not able to help you with your interest rate or monthly payment, and your interest rates have become out of control, consider a consolidation loan. Be sure to investigate the interest rate not only for the introduction time of your loan but the entire life of your loan. You do not want to get into a loan that will leave you stuck with a higher interest rate overall than what you started with without the loan.




Next, consider settling your debts for less. If you have recently run into some money and are looking at sowing that money back into paying off debts, you may want to try settling with your creditors. Quite often you can settle your debts for a fraction of what you owe if you offer to pay the entire balance off immediately.




Another option would be to contact a credit counseling service. If all of these options are overwhelming, contacting a credit counselor can put the logistics in someone else's hands. Be sure to look at what the counseling service charges. Some credit counseling agencies will charge large monthly fees that you can avoid paying by looking for non-profit agencies that will offer their services for a small fee or even for free.




A final option would be a personal bankruptcy. However, if you truly try the previous options and contact your creditors to discuss your situation with them, there really should be no reason for a bankruptcy.

Nicholas writes for a website which offers financial help for people facing debt problems, and advice on how to avoid foreclosure.

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Foreclosure, What The Government Is Doing About It

The increase in foreclosure rates across the country has caused millions to turn to their government for some sort of aid.




In some cases people want a bailout, while others simply want laws changed. It appears to be working, too, with the number of bills introduced to the Senate and House since the start of 2009 increasing nearly as fast as the foreclosure rate. Of course there's no telling when these bills will be passed, if at all, but it is promising to see representatives using their voice to speak for your needs.




Although the Housing and Economic Recovery Act of 2008 arguably was the most famous foreclosure bill, it is clear its purpose was two-fold. First and foremost, the bill was needed to provide assistance to homeowners and lenders struggling with this issue.




Not only did the bill, which was signed by President George Bush on July 30, provide loan limitations for lenders, it established the Home Ownership Preservation Entity Fund to fund the HOPE for Homeowners Program.




This program insures up to $300 billion for 30-year refinanced loans for distressed borrowers over the next few years. The bill also drew attention to the growing need for aid for the millions of homeowners at risk.




One of the bills recently introduced both to the House and the Senate is the Systematic Foreclosure Prevention and Mortgage Modification Act. The heart of this bill calls for the Federal Deposit Insurance Corporation chairperson to pay up to $1,000 to help cover the expenses of a loan modification as well as splitting the loss should a modified loan re-default.




A bill introduced in 2009 geared more toward helping the homeowner is the Foreclosure Rescue Fraud Act of 2009. This bill limits the power a foreclosure consultant has during a case. Homeowners also would be permitted to cancel their contract with a consultant without penalty.




There is a bill closer to a vote; the Housing Assistance Tax Act of 2008. If passed, this would increase the amount of low-income housing credits allocated to each state, as well as modifying the rules of low-income housing tax credits.




The bill also would increase the percentage of property used for leasing without affecting the rehabilitation tax credit. There also is an amendment aiding single family homeowners. Although these bills may never become laws, it is a start to reforming foreclosure for the millions across the country where this is a reality.

Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com

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Article Source: www.articlesnatch.com