Debt Management Part Three: Problem Debt.

In part one of this series of articles on debt management we talked about managing your money and in part two we talked about making a detailed budget and indicated how this would help you bring your expenditure under control. Here, in part three, we will look at some ways in which you might be able to cope with problem debt.

Being in dept is not a problem in itself as long as you can afford to repay it in accordance with the loan agreements that you made when you borrowed the money. Problem debt begins when you can no longer afford to make these repayments. If you find yourself in this situation it is very important that you take some action immediately. There is a great tendency amongst people who encounter problems with debt to bury their heads in the sand. It is no doubt a truism to say that debts will not go away by themselves, but we will say it anyway: debts will not go away on their own accord.

The first thing you need to do in these circumstances is to produce a full and detailed account of all your debts. You should produce a complete and detailed list of everyone to whom you owe money. In this list you should state the total amount outstanding, any arrears you might have, the interest rates payable and your payment schedule.

Once you have made this list you should determine the most important debts; those that have the highest priority. The debts with the highest priority are those that non-payment would likely result in serious consequences; for instance failure to pay mortgage debt could mean that you might lose your home, and failure to pay against a county court judgement might mean that the bailiffs would visit you and take away your possessions. Failure to pay council tax debt and court fines could even result in your receiving a custodial sentence.

You should then work out how much you can reasonably pay towards these debts, with the prioritised debts being given preference. When you are clear on all these facts you should contact your creditors to talk to them about putting together a repayment plan. It is quite likely that some professional help on debt management would help you at this stage.

In part four of this series of articles we will look at priority and non-priority debts in more detail.

Can an Interest Only Refinance Save You Money?

If you so happen to be like the majority today, you are looking for each way possible to save some coin. If you are a householder with a bit of equity in your home, an interest only mortgage refinance may be just the thing you need right now.

Like many folks, you'll probably have heard the term "interest only refinance", but not completely grasped what it is. This article will help you to better understand exactly what an interest only refinance is, and how one might be able to provide advantage to you. We'll also take a quick look at what is going on in the real estate market now. Though we have had nothing but negative news for what appears like forever, things appear to be turning rather recently. Latest reports shows a kind of good news/bad news scenario. At about that point though, I suspect any "good news" is very much welcome.

First of all, let's take a look-see at what is going on in the market and real estate values generally. Clearly the general cost of homes not only significant affects those people who are in the market attempting to purchase or sell their houses, except for people attempting to refi their home loan, overall home values matter a lot too.

So, we just had a better than predicted S&P Case Shiller Home Index report for the month of Apr. The number from this report shows us is the general trend in home costs in 20 of the biggest towns across the United States. Although this is considered a trailing report, the good news is that it showed fewer lower readings than in the reports we have had most lately. In other words, we are seeing a slowing speed of declines in home costs in a lot areas. in a couple of markets including Dallas and Denver, the report essentially showed some home costs going up a bit. Like I said before, any excellent news will be absolutely welcomed.

Considering Mortgage Refinance?

Considering Mortgage Refinance? Bad Debt and How To Get Help

If you are considering refinancing your loan because you are struggling to make repayments, call and speak to your bank as the first priority.

If you are in financial trouble, you really should speak to your lender first.

In Australia, the major lenders and bank CEO's declared recently that they could give a respite of up to a year to the debtors that have lost their jobs in the global financial crisis. Other alternatives could be to pay only the interest on the loan or lengthen the term of the mortgage.

Credit Cards High interest rates on credit cards should be negotiated by asking for a lower rate or even getting it bundled into a personal loan. Get rid of that credit card and replace it with a debit card if you really need to pay your bills by card.

How to get Some Relief From Bills Contact your creditor and ask for more flexible repayments. Sometimes you may be able to get help from the government. Go to www.choiceswitch.com.au in order to locate your local consumer relations contacts.

Taxation If you are swamped by tax debt, contact the Australian Taxation Office and ask for an extension on your payment schedule or even an annulment if you are experiencing serious finacial hardship.

Go to www.ato.gov.au or phone 13 11 42.

How to Apply for a StepUP Loan The National Australia Bank & The Good Shepherd Youth and Family Service have put together a new product called the StepUP Loan, which you are eligible for if you receive Family Tax Benefit Part A or have a Health Care Card.

This will get you a loan (around $800 & $3000) which may be used to buy furniture, use cars or computers. 3.99% interest is charged for the loan term and also the payments are very flexible.

Obama Refinance Plan How it Works and Will You Qualify

If you are a homeowner who is struggling to make your monthly mortgage payments, missed payments or are even facing foreclosure, the Obama refinance plan may help you get the financial reflief that you need.

The plan was designed to stop the surge of foreclosures across America. It gives lenders and more incentives to provide loan modification for homeowners who qualify. How do you qualify?

Answer these questions:

A. Is your home your primary residence?

B. Is the amount you owe on your first mortgage equal to or less than $729,750?

C. Are you having trouble paying your mortgage?

D. Did you get your current mortgage before January 1, 2009?

If you answered yes to these questions, so far you are a good candidate for this program.

Here is some more information:

* Modifications may be available for borrowers who are delinquent (including those currently in foreclosure) or for borrowers facing the imminent risk of default because of a documented inability to continue making their current monthly payments. * The property must be occupied as the borrower's primary residence and most property types are eligible including, one- to four-unit properties, condominiums, co-ops, and manufactured homes. * Mortgages originated on or before January 1, 2009 are eligible and the unpaid pre-modification principal balance can be as high as $729,750 (more for two- to four-unit properties).

If you are eligible for this program, you will be able to lower your monthly mortgage payment to no more than 31% of you total monthly net income. This will be accomplished in the following ways:

- First, reduce the interest rate to as low as 2%, - Next, if necessary, extend the loan term to 40 years, -Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

This is a great program for those who qualify. If you want more information on this program and assistance to increase your chances of acceptance, just visit the links below.

Obamas Mortgage Plan How Do You Qualfiy

If you are looking for information on Obama's mortgage plan, you've come to the right place. Here you will find out all the requirements for this plan. Meeting the requirements is the easy part, actually getting the file approved by your lender is another story...

For Obama's mortgage plan, you need to meet the following requirements:

1.Modifications may be available for borrowers who are delinquent (including those currently in foreclosure) or for borrowers facing the imminent risk of default because of a documented inability to continue making their current monthly payments. 2. The property must be occupied as the borrower's primary residence and most property types are eligible including, one- to four-unit properties, condominiums, co-ops, and manufactured homes. 3. Mortgages originated on or before January 1, 2009 are eligible and the unpaid pre-modification principal balance can be as high as $729,750 (more for two- to four-unit properties).

These are the main qualifications that need to be met. If you do meet these requirements, you may be able to reduce your monthly mortgage payment to 31% of your total monthly pre tax income.

This is accomplished by:

1. Lowering your interest rate to as low as 2%. This is the first step lenders take.

2. Extending the terms of your loan. If your payment is not low enough from step 1., they will try this to get it lower.

3. Finally, if necessary, your lender will forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.

This is all great, but not so great if you don't get your loan modified under these conditions. Lenders are still heavily backed up and your files have to be perfect to get accepted. If you would like more information on Obama's mortgage plan or help getting your files approved, just visit the following link.