Category Archives: Auto Loans
Debt consolidation services: get rid of debts in an organized manner
Managing debts of huge proportions is a harrowing experience, particularly if you had sourced loans from a large number of lenders. The major problem arises in making timely repayment of the installments. Moreover, paying the multiple installments does not seem to be a possibility and that from a single income source. Besides, you may not know where to start the proceedings on managing the debts. There is nothing to worry, as you can seek the assistance of debt consolidation service to resolve the debts in an organized manner.
Debt consolidation service essentially enables you to merge all your current existing debts in to a single amount, which then has to be paid off with the help of a new fresh loan sourced from one of the existing creditors. By doing so, you are not anymore obliged to make multiple payments to multiple lenders. Instead, you will pay a small monthly amount to a single lender and that too at comparatively low interest rate. This way, there will be a considerable amount of reduction on the burden of debts.
In order to assist you with the process of debt consolidation, you can also seek the advice of experts, who are readily available. These experts negotiate with your multiple creditors to lower the interest rates and the downsizing the over all amount that remains to be paid. Lower interest rate ensures that you will be able to save a considerable amount, which then can be used to serve other purposes.
In the financial market, there are lots of companies offering debt consolidation services. However, to have a good knowledge on these services, you must go through the terms and conditions first. You can use the online services to have a proper understanding on these services. Once you have selected a deal, it becomes easy for you to repay the debts completely in an organized manner.
Debt consolidation services alone cannot assist you to resolve the debt problems. You are also required to take some necessary actions such as cutting down the unexpected expenses and adhering to a strict monthly budget. Only by doing so, you will be in a position to resolve the crisis of debts.
What to Include in a Loan Modification Hardship Letter – Helpful Advice to Getting Approval
The loan modification hardship letter is often thought of to be the most difficult part of applying for a loan modification. Not only is there a large amount of pressure on the hardship letter itself, but certain information needs to be included while other information should be avoided.
Because of the need to write the loan modification hardship letter, many homeowners get discouraged. But keep the following points in mind and you’ll be writing the perfect letter to send to your lender with ease:
At the start of the letter, be sure to state that you’re writing the letter to supplement your application. This can easily be done by using a sentence like “I am writing/sending this letter to support/explain my application for loan/mortgage modification.”
The hardship letter needs to include any circumstances leading to your current financial hardship. Some examples of circumstances would be: being laid off or demoted, or loss of a cosigner or spouse. Besides these circumstances, there are several that any lender will accept. Lenders understand that life happens and there are just some situations you cannot get out of easily, if at all.
Explain why your current interest rate is unmanageable for you. This is different from circumstances in that you explain what you’ve done to try to accommodate the rate, but can’t find the means to do so. A rising interest rate on the same budget that you’ve had for a long time is also means for a loan modification.
Before writing the letter, come up with a budget or plan that you’re going to use to handle your expenses. Explain the main points of your budget or plan in your hardship letter. This shows that you are going to try to make changes to keep in your home and on your feet.
Including the interest rate you’re looking for in your loan modification hardship letter cannot hurt your chances for approval. And if you’re approved, you may even get that rate. Just be sure that it is reasonable and explain why that rate works for you.
Somewhere near the end of the letter be sure to include your intent to stay in your home and work with your lender. They don’t want you to go into foreclosure, but they do not want to give assistance to someone who is not going to make an effort either.
These are the main points you should include in your loan modification hardship letter to get the best results. A clear, concise, and professional letter will get you that much closer to a modification.