Non-profit organizations such as the Consumer Credit and Debt Counseling Services can assist individuals to consolidate debts in one single monthly payment. 

These companies also handle collection calls and help clients plan for a better financial future.

Before re-possessing your home the lender would usually try to help you by rewriting the loan, agree to a short sale, suspend principal payments for a time (you pay interest only), reduce payment amount, or even let you miss some payments to have you pay them over time.

Credit and Debt Counseling

How to cut credit card debt:

  • Ask your card company for for a rate reduction
  • Pay high interest rate cards first
  • Obtain a card with lower rate
  • Ask your card company for for a rate reduction
  • Use (if absolutely necessary) only cards with lower rates
  • Get rid of cards that have: high interest rate, late payment fees, no grace period, nactivity fees, fees for not having a balance, over the limit fees, etc...

Contact a bankruptcy lawyer or credit card debt consolidation companies for professional help.

How will the economic stimulus bill handle the country's financial crisis?

On March 4th, 2009 the Homeowner Affordability and Stability Plan was unveiled by President Barack Obama. The program is designed to help bring relief to 7 to 9 million struggling homeowners in America modify or refinance their mortgages.

The Homeowner Affordability and Stability Plan offers incentives that will reduce payments by:

  • Reducing of loan principal (at lender’s discretion).
  • Lowering of loan interest rates.
  • Offering Loan extensions (from 30 to 40 years)

The eligibility criteria for the new plan will include:

  • The property must be your primary residence
  • You must demonstrate and prove financial hardship
  • Your monthly mortgage payment must be greater than 31% of your monthly gross income
  • You must prove that you are either delinquent already or will become delinquent in the near future
  • Your loan must not exceed current Fannie Mae and Freddie Mac loan limits.

Only the mortgage on your primary residence is eligible. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

Banks, mortgage lenders and financial institutions are now accepting applications for this plan.

Call your financial institution for more details on eligibility.

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