Tips for Choosing a Debt Consolidation Company

If you have trouble managing your debt on your own, you’re not alone. Many people go to a debt consolidation company to help deal with creditors and lower their debt payments. Before you hire a company, make sure you get some information to help you choose.

You can also visit Money Now! USA’s website to learn even more about debt consolidation.

Look at the company’s reputation. Check with the Better Business Bureau ( to find out if other consumers have made complaints against the company. Several unresolved complaints against a company is a sign that they don’t follow through on their promises to customers. No matter how much you may want to go with a company, it’s best to move on when their BBB standing isn’t acceptable.

Make sure the company offers different services. A good debt consolidation company will do more than combine your debt payments; it will also give you sound money management advice. Look for a company that will help you learn to budget and stay out of debt as well as work with your creditors to reduce your debt.

Choose a company with reasonable prices. Debt consolidation companies should charge reasonable fees for the services they provide. They also should be upfront about the fee. If a company hides details about the cost of their services, be suspicious. Ask about having your fee waived or reduced if you will have a hard time paying it.

Watch out for scams. Unless you have a lot of money, debt management will not be a quick fix. Stay away from debt consolidation companies that offer those “too good to be true” solutions to your debt. Expect to send affordable monthly payments for two to five years to get your debt paid off. Anything other than that is a watch-out.

A lot of debt consolidation companies take advantage of vulnerable consumers. Take your time and look for a good company to keep from becoming the victim of a scam.…

The Trouble With Mortgage Loan Modification

In some cases, mortgage loan modification only postpones the inevitable. Rather than helping you afford your mortgage payments, a modification can put your monthly loan payments out of reach and leading you to foreclosure anyway.
What Is Loan Modification?

Once you’ve become 2-4 months behind on your mortgage, you likely qualify for mortgage loan modification with your lender. If you’re approved for loan modification, your lender freezes your interest rate for a period of time to keep it from continuing to adjust upward. Then, your delinquent payments are added into your loan balance and your payments are recalculated. The loan is reset and you’re no longer behind. You continue to pay your loan off at the new terms.
How Can Loan Modification Hurt?

In some cases, interest rates don’t decrease with a modified loan, meaning your monthly payments would remain the same. However, once your delinquent amount is added back into the loan and your payments are recalculated, you end up with a higher monthly payment. You ward off foreclosure in the near future, but unless you increase your income, your mortgage payments remain unaffordable.
Choosing a Good Modification

Don’t make a loan modification decision based on desperation. Before you agree to a loan modification, make sure you understand how it will impact your monthly payments. If your payments are going to go up, ask your lender about other options.

Negotiate a lower interest rate as part of your modification terms. Unless your interest rate goes down, your monthly mortgage payments will remain the same or even increase. Sure, you avoid foreclosure for a little while, but without lower payments, the risk remains. You can also ask your lender to waive some of the late fees charged on your missed payments.

Get foreclosure-prevention counseling from a local consumer credit counseling. Advocates can sometimes help you negotiate better terms with your mortgage lender.…