Drowning in Debt: Ways to Recover

Drowning in Debt: Ways to Recover

When you are in debt to many creditors at once it can consume not only your money, that’s a given, but also your life. Being in debt doesn’t feel good. In fact, it can cause you to sink into depression and leave you unable to perform to your best ability at home and work. Having excessive debt can also have an impact on your credit. The good news is that there are several ways to fix the problem and relieve the stress you now face daily.

Applying for a Loan

A quick fix to your debt is to earn cash quickly to pay up what you owe. However, in most cases when you are severely in debt, you also have a poor credit score, which will limit the number of lenders who will approve a loan application. Thankfully, there are other lenders who offer quick cash loans that don’t use the same guidelines as traditional banks, giving you a better chance at getting some money to help reduce the debt.

Debt Consolidation

If you feel that you are too far gone to straighten things out, a debt consolidation service may be of interest. You will need to have all your information including the names of the creditors and the amounts you owe each one before contacting the service. However, once you turn over this information, they will contact each one of them and try to reduce the amounts you owe and settle them. This will let you pay one payment each month to the debt service to cover all the balances. In many cases, you can pay them off completely within one to two years.

Contact Your Creditors

If you prefer to do it on your own, and you think that you can start to make your payments on time, contacting the creditors on your own makes sense. In many cases, the companies will work will you rather than have to place a bad debt with an outside company and lose a large portion of the money you owe them.

Give up the Luxuries

The best way to get out of debt is to pay off the debt as soon as possible. Giving up on the luxuries such as dining out or buying large items and refraining from spending ensures you have that money to put towards your debt. Paying it off sooner also will help you to save money on the interest accumulated, as well.

Other Sources of Income

Another way to reduce your debt is to find another source of income. You may take on a second job or use your skills to provide services to another for a fee. You can also sell things around your home. Chances are good that if you you’ve lived in your current home for more than a couple of years, you have things in good condition that you don’t need but that someone else can use.

Having a lot of debt can weight heavy on your shoulders. Luckily, there are many ways to reduce your debt and start enjoying life once more.

Get Help with Your Mortgage in Florida and Avoid Foreclosure

Get Help with Your Mortgage in Florida and Avoid Foreclosure

Source

A lot of people believe that, once they are facing foreclosure, no bank will touch them anymore. In reality, however, Florida mortgages are there to help them avoid foreclosure as well. Not just that, thousands of people who took out a mortgage in Florida many years ago have found that their original lender is now owned by a major national bank, is no longer in business, or has been sold to a different, out-of-state lender. In all of these cases, it may be time to consider a different mortgage altogether.

Start Anew

Florida mortgages are there to help you start afresh, and this can help you avoid or stop foreclosures. In fact, purpose foreclosure loans exist, which can take on your mortgage and any other debt you may have, combining them into one. Once you have done that, a weight will fall off your shoulders as you can suddenly meet all your financial obligations. All you have to do is find a Florida mortgage expert that deals specifically with foreclosure situations. A quick internet search will reveal many of these professionals just waiting to help you.

What Foreclosure Experts Do

Foreclosure experts work specifically with those who are in dire financial straits. They know that their clients have been turned away by the vast majority of other lenders but are able to find them other solutions. Foreclosure rates have always been at the highest in Florida and the government has created a number of programs to provide assistance with this.

Foreclosure loans do require a down payment. However, there are federal programs in place that can help with this as well. An example of a solution that is out there is the Florida Assist loan program, which offers help of up to $15,000 for a down payment. While this is a loan, it is non-amortizing and no interest is charged on it. Furthermore, the loan is offered as a second mortgage, and no monthly payments have to be made specifically for that loan. Instead, you will not have to repay it until the home is refinanced or sold on.

Another option is the HAMI (Homeowner Assistance for Moderate Income), which offers help towards down payments or towards the cost of closing. Furthermore, there are a variety of incentives and credit programs available through the government, all designed to ensure people can either buy their own home, or avoid foreclosure. The Office of Community Affairs provides a wealth of information on these options.

Naturally, the best option is to never get into a position in which you face foreclosure. There are many different Florida mortgage lenders around who have very friendly acceptance criteria. They would be more than happy to hear from you and discuss the options available to you. It is best to do this as soon as possible, rather than waiting until the bank starts to make moves towards foreclosure, as the longer you wait, the worse your situation will look on paper.