The usual means for reducing debt exposure is contacting a consolidation agency or negotiating debt yourself. Debt consolidation implies contacting lenders and agreeing with them new repayment programs with lower monthly payments. This result can be achieved either by reducing the amount of money charged on interests or by extending the repayment schedules.
Debt Consolidation
The procedure is simple enough: Either you or the agent assigned to your case by the consolidation agency contacts each of your creditors and tries to convince them of the advantages they will get if they agree to lower your monthly payments. Sometimes in order to obtain their money sooner the lenders agree to a cut on the overall debt including capital and interests. In many cases debt consolidation agencies have obtained up to a 65% reduction of the debtor's outstanding loans and credit card balances.
Once the negotiation process is completed; your debt expenses will be greatly reduced. However, sometimes the procedure is not enough and you may not be able to afford the monthly payments. At this stage, some debt consolidation agencies offer a debt consolidation loan with a longer repayment program. You just pay this single monthly installment to them and they take care of your loan payments and bills.
The problem is that in certain situations there is too much debt that is non-negotiable. Typically, federal greeneasylife.com/StudentLoans student loans and some private student loan programs, home loans, home greeneasylife.com equity loans and any other form of secured loan is too hard to negotiate because the lender is comfortable knowing that he can legally claim your property in case you fail to repay the loan.
Refinancing
One would think that speedybadcreditloans.com/home-loan-mortgage-refinance.html refinancing would only solve the problem with your home loan, but truth is that by taking advantage of cash out greeneasylife.com/refinancing refinance loans you can request a higher loan amount than the amount of your current mortgage's remaining debt and use that extra money to cancel other non-negotiable debt.
This procedure will not reduce your debt but will reduce your income/spending ratio because by refinancing you'll be able to spread your debt into a longer repayment program reducing the amount of your monthly payments. Since by applying for a cash-out refinance loan you'll get actual cash, you can use it for prepaying outstanding debt, but be careful to repay those loans that don't have prepayment penalties first; that way you'll save even more money.
The only difficulty that this method presents is that you need to have enough equity on your home in order to obtain a cash-out refinance loan. If a home greeneasylife.com equity loan is part of the debt you need to repay, chances are that you won't be able to use this system. However, there are some lenders offering up to 135% financing at slightly higher rates. If there is no other choice, you can resort to them.
Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. In her website badcreditloanservices.com Badcreditloanservices.com you will find more useful tips and interesting financial articles on this and many other related topics.
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