Mortgage, Real Estate and Debt Information

The various problems that you can face if you have unpaid debts are -

1. It affects your credit report and thus your credit rating.

2. An impaired credit report can show you in unfavourable light and reduce your chances of getting a credit card, a loan, a mortgage or an overdraft.

3. An unfavourable credit report can impair your chances of buying or renting a property.

If you want to go for debt reduction it would be best to follow the following three step process.

Household Budget Creation - You can create a household budget by anticipating your income and expenditure. You can identify the approximate income for the budgeting period (a month or a week) and also the approximate expenditure for the same period. By subtracting the total expenses from the total income you can get your disposable income and that can be used for an accelerated debt reduction.

Monitoring Your Budget - Once you have the figures it is now time to monitor the budget. It involves discipline and a bit of hard work. You need to note down all your expenses when you go shopping or an outing. This will help you to monitor and control your anticipated expenses.

Debt Reduction Program - This is the big one. Once you have planned and monitored, this is the implementation stage. You need to tabulate the data you have collected and take care to eliminate (more realistically minimise) the expenses.

The expenses should be handled in order of decreasing interest rate, i.e. the one which incurs the highest interest rate (most often your credit card) should be tackled first.

A proper adherence to this program can go a long way in assuring you of a better and safer financial future.
If you are looking for a way out of the debt trap you have fallen into, just visit www.debtescape.com.au. The site is managed by Credit Counsellors Australia, a subsidiary of SRMC Limited and also one of the most reputed companies providing insolvency service for individuals in Australia.

Their team of insolvency counsellors, who are all tertiary qualified in accounting, can provide you the best advice on how to consolidate your debt and get a debt agreement. These professionals specialise in bankruptcy debts and bankruptcy credit counselling and will be able to take care of all your debt consolidation needs. The site also has tips and advice on debt consolidation care, bankruptcy, debt agreement and consolidation personal loans.

http://www.debtescape.com.au

President Barack Obama is well aware that the current economic situation in the country leaves a lot of homeowners struggling. Housing prices have crashed and the all time high number of foreclosures does not help that at all, lowering surrounding homes values by as much as 9%. Home and property values have dropped so far that many homeowners now owe more on their mortgage than their home is actually worth. Due to these problems, the Obama administration has introduced the housing and homeowner stimulus plan. This plan was announced in February and has started this month. Most people no longer have 20% equity in their homes, which is typically required for traditional mortgage refinancing, due to the dropping home prices. The stimulus plan from President Obama is going to make it easier for homeowners to modify or refinance their current home mortgage and have more manageable monthly payments and avoid a possible foreclosure. The goal of this home mortgage stimulus plan is to help over 5 million homeowners stay in their homes and avoid foreclosure or defaulting on their loan. This is done by giving incentives to mortgage lenders to use their new guidelines for approving a mortgage refinance. So with more incentives and less risk to mortgage lenders are going to be more flexible on who can refinance, how much they can save, and finding financially affordable monthly mortgage payments.

Homeowners looking to refinance or modify their current mortgages will get their loans restructured by mortgage lenders. With this plan, the maximum allowable monthly mortgage payment can not exceed 38% of the homeowners gross monthly income. Mortgage lenders will also get a dollars for dollar incentive from the government to further lower the monthly payments to 31% of the homeowners gross monthly income. This is great news for a lot of homeowners who are out of work or just struggling to make their monthly mortgage payment. A lot of homeowners currently pay 40% or even 50% of their income towards their mortgage. A 20% reduction would add up to a lot of saved money every month.

The Treasury of the United States has an exact series of guidelines for mortgage lenders and banks to complete when refinancing or modifying a home mortgage loan. In the past for example, mortgage loans have been refinanced or modified by adding on missed payments to the loans principal which basically did nothing to reduce the monthly payment. The housing mortgage refinance stimulus plan announced by Obama will mean a great amount of savings for millions of homeowners.

Home refinancing can save you thousands or if it is done the wrong way cost you thousands. Greedy mortgage lenders will try to suck you dry if you let them. Learn how to properly refinancing a home mortgage and walk away happy and with more money.