When different loans are paid at various times of the month, the amount is usually much smaller, than if all the loans are consolidated and only one payment is made each month.
Whilst it is true that remembering to make multiple payments throughout the month can be a cause for stress, not having the funds to make the one larger payment can also be a detrimental factor.
However, with a bit of planning and discipline, this can be easily overcome.
Planning for Sufficient Funds to Pay the Loan
- Collect all the loan statements, such as the home loan, car loan, personal loan and credit cards, Make a list of the due date and the amount due.
- Ascertain the eligibility to consolidate all the loans into one. This depends on the equity available in the home and the capacity to repay. (There are ‘How Much Can I Borrow’ calculators available on many banks’ and other financial institutions’ websites.)
- Work out how much the repayment will be if the loans were consolidated. (There are ‘Monthly Loan Repayment’ calculators available on many banks’ and other financial institutions’ websites.)
- Decide how much the repayment is each month. This can be the minimum amount required by the lending institution or, if the wish is to pay off the loan sooner, then an increased amount should be considered.
- Determine how much needs to be saved each week to get to the required amount and work out a ‘savings plan.’
Saving to Have the Required Funds on the Due Date
It is much easier to put aside a smaller amount each week than to find a large sum at a specific time of the month. There are many ways that can be utilized to achieve this. However, it is very important to open a designated Savings Account for this purpose.
Once this is done, there are several ways to get the necessary funds into the account.
- Ask the employer to deduct the specific amount each week from the wages and credit it directly into the Savings Account. This is one of the best ways, for two reasons:
- Once the authority has been given to the employer, one can be confident that it will be done without fail; and
- The employee gets used to receiving a reduced amount each week and can budget accordingly.
- If the employer is unable to comply with this request, then a Direct Debit will have to be set up for the required funds to be transferred from the person’s transaction account into the savings account each week. Again, once set up it is an automatic process.
- However, if payment is received in cash, then it is imperative that the required amount is deposited into the savings account as soon as possible, prior to using the funds for any other purpose. This is where the actual discipline comes in.
Although handling one loan repayment requires some planning and discipline, debt consolidation should be seriously considered because it can save time and money.
Maybe you live in Louisiana, if so you probably know that home equity loans are popular here because they offer a lot of advantages. This type of loan uses your house as a guarantee for the fixed payment credit. You can apply for a Louisiana equity home loan for any purpose you might have and take advantage of the low interest rates this type of loan has to offer. In addition the monthly payments are tax deductible and many people use the credit to pay off other costly debts.
Louisiana equity home loans are very easy to apply for because most lenders are present on the Internet. You just have to log on and fill an application form to receive an answer in just a few days. The lenders analyze the value you requested, you previous loans and income and the value of your house. You can get up to 125% of the value of the house but is it advisable you get a smaller amount than that so you will be able to pay off and cover you debts.
When searching for a Louisiana equity home loan compare as many offers you can from different lenders and take into consideration not only the interest rate but also the annual percentage rate. Also make sure you can prepay the credit without paying any additional fees. It is good to know that the higher the value of the equity the lower the interest rate will get.
There are some trustworthy lenders for a Louisiana equity home loan One of them is Capital one where you don`t have to pay a fee if you want to prepay your credit and you can get a loan for up to 20 years. The most important may be Chase who has the best interest rates but they do charge a fee for credit prepayment. The Bank of New Orleans and Whitney National Bank are some good alternatives with rather good interest rates. If you are not sure about fees and terms showed on the banks website go to their headquarters and ask for the advice of a consultant.
Before getting a Louisiana Equity Home Loan check out some economic predictions about the value of real estate in the area. If it is said is going to rise you should probably wait a little longer in order to get a lower interest rate of your higher equity. If you need to refinance one of your existing loans or pay for something expensive and you take it for a long term this kind of loan is perfect for you.
Loan modification is debatably the best solution to your problems when you are lagging on your mortgage and facing financial hardships, to save your home from foreclosure. Modified home loans are something similar to Mortgage Refinancing, in which the prime focus is to discover a comfortable repayment of your mortgage. It is often termed as ‘Modified Refinance’ too. The main point to be noted is that instead of you searching for a new loan, you can simply alter the terms of the existing loan. In this, the loan is restructured so it meets the convenience of the debtor.
The bank does not simply modify your loan out of sympathy. They agree for modified loan plans which are essential to have a comfortable repayment plan and make more business sense than the alternative. This has also occurred due to the current economic conditions wherein the homeowners have been badly pinched by the fall of the economy. The idea of modified home loans hence helps both the parties, the bank as well as you.
The need for ARMs i.e., Adjustable rate mortgages shall continue through the 2016s and 2017. The best option for the homeowners is to discuss with their loan servicing company and opt for modifications in the home loan terms. Sometimes, when you try for this, you don’t reach the correct person or you are never called back to resolve your problem. Please remember that this is your prime need and not theirs. Hence, if you feel the procedure is taking more time than necessary, then please consult or hire an attorney who specializes with foreclosures and loan modifications.
Another solution is to choose a loan modification company that already has an attorney who can answer all your queries and doubts aptly and provide the correct answers to your problems and help you out in a better way. This system works better as you also need not have to invest in an attorney from your side. The end result is you get to keep your loving home and also decrease the interest rate to a comfortable level. Qualified personnel from such a company will get in touch with you if you qualify for the loan modification provided you meet their certain criteria as well, which wouldn’t be very complex.
A standardized procedure for modified home loans are yet to come through since it is difficult to set the standards as of now. Yet, some of the programs have already been in use due to the recent times and are getting very popular. So, next time you are in a little financial crisis, don’t forget that you have modified home loan plans to take care of you now.