Mortgage Calculator
Benefits of using a Mortgage Calculator
A Mortgage calculator can be crucial for
people who are looking into buying a home. While it is nice to think that
people can buy a house without having to deal with a mortgage, most people who
buy a home require a loan. The numbers and equations in obtaining a mortgage are
enough to confuse anyone. Many people simply talk to their mortgage broker or
the lender to try to figure out exactly how much a mortgage will cost them. There
is a way to be informed on the mortgage as a first step to making any
decisions. By using a mortgage calculator , you can figure your payments and
basic costs. There are various calculators which can help you in any number of
calculations.
What Calculators are available?
There are calculators available for almost
any purpose you can imagine, below is a basic list available for mortgage
purposes.
Debt
Consolidation Calculator – Work out the benefits of consolidating your
debts.
Cost
Calculator – Work out how much it’s going to cost you to buy your house.
Repayment
Calculator – What are your repayments going to be?
Borrowing
Calculator – How much will a lender offer you? This is usually a very
general calculator. The only definitive way to assess this is the speak to
your lender or mortgage broker.
There are
also calculators for car loans, calculating balloon payments, the effect
of extra repayment, lump sum repayments and many other purposes.
Know What You Can Afford
The first major benefit of a mortgage calculator
is the ability to figure out exactly what you can afford. While many people can
understand what they can afford as far as monthly payments are concerned, they
are unsure how interest and everything plays into the numbers. The mortgage
calculator gives you the luxury of playing with the interest rate, amount of
deposit, and loan term to figure out what you can afford, and how to arrive at
the loan amount that you can afford.
Know What Small Changes Do to your Payment
The next benefit is the simple idea that
the mortgage calculator allows you to play with the numbers at will to
understand exactly how changes affect your monthly payment. By playing with the
different numbers you can figure out the best way to get what you want in a
realistic way.
Know your Price Range
When buying a house people often find they are
unsure of how much they can afford. How does Interest rate or deposit impact
the price they can afford to pay for a house? What is the maximum purchase
price? Some people believe they can pay a certain amount, but can actually pay
more. Being informed will allow you to buy better and give you an advantage
when negotiating with the vendor.
Do Mortgage Calculators have limitations?
Mortgage calculators are a fantastic
resource as a first step to securing a mortgage or buying a house. The simple
nature of a calculator is also its greatest limitation; there are many factors
to consider in obtaining a mortgage that a calculator does not cover. For
example, a calculator does not look into your credit worthiness or the impact a
credit default has on the interest rate, or the amount you can afford. It also
does not consider or have the ability to work out exact loan costs for your
particular situation. A Mortgage Calculator should be viewed as a first step
asset to obtaining a mortgage, but know they have their limitations.
Summary
When using a mortgage calculator , you can
begin to educate yourself on what you can afford the basic costs and the
benefits of various loan situations. You can have ready access to online
calculators or even computer based calculators without dealing with a lenders
sales pitch. Calculators are great as a first step to obtaining a loan or a
mortgage, but know the limitations. Where possible make a call to a mortgage
broker or a lender as the next informed step to obtaining a mortgage. When
trying to restructure a mortgage, or to entering into a new one, the mortgage
calculator can help you understand what you can do, and what you cannot afford.
Using your Mortgage for Debt Consolidation
Benefits of Consolidating Unsecured Debt to
your Mortgage
Trying to have a hold on all of your debt can
be difficult at the best of times. You may have multiple loans and debts for
multiple reasons; debt consolidation can help reduce your overall repayment and
manage your debt more effectively. Debt consolidation is simple; it brings all
of the debt together under one single loan. Many people consolidate their loan into
their mortgage, making it easier to bring it all together. There are multiple
benefits to bringing all debt into one, but there are four major benefits of
consolidating unsecured debt to your mortgage.
Does the Interest Rate make a difference?
By using Debt
Consolidation , you can actually lower your overall interest rate that
you are paying. The idea is that you are moving all of your debt to one
location; this often requires the need to re-configure and restructure an
existing loan. If you consolidate your loans, certain debts may be a lower
interest rate because the new interest rate is better than the old one. While
this may not happen with all debts, just because the new loan is being
stretched over a longer period may reduce the repayment and hence make the loan
more manageable. For example:
The
repayment on a $20,000 loan at 11% over 3 years is $652 per month. If this
loan was consolidated into a 30 year mortgage with the same interest rate
the repayment would be $190 each month. Effectively releasing cash flow of
$462 each month.
The above example shows how people can get
a handle on their finances. It could help you
afford your monthly payments,
where you may not have been able to as separate debts.
Why use a Mortgage to secure the debt?
The loan options available to consolidate
your debt are using a Secured Consolidation Loan or an Unsecured Consolidation
Loan. When a lender has security against a loan product they will offer you a
higher loan amount and a better interest rate. Both these features allow a
better result when consolidating your debts. A low loan amount may prevent you
from consolidating all of your debts. At times this may prevent you from
obtaining a Debt Consolidation Loan all together.
Convenience and Simplicity
The most exciting benefit of debt
consolidation, however, is the simple convenience factor. By consolidating your
debts, you are bringing all of your debt into one place. Many people often have
3, 4, or 5 loans and sometimes up to 10 loans; this can be very difficult to
manage and keep all of your loan agreements.
Paying one lender, with one interest rate, and one monthly payment can
make your finances significantly simpler to manage.
Conclusion
Many people bring their loans together
through debt consolidation as a way to make their lives easier and simpler;
debt is never fun for anyone, but debt consolidation allows you to manage your
debt more effectively and take control. Consolidation can allow for lower
monthly payments, and the convenience of having it all in one place.
Consolidating your debt into a mortgage is an even better way to bring
everything together under one roof; and make your debt work for you a little
more.
Credit Default
Top Causes of Credit Default
Your credit file is one of your most
valuable assets; which needs to be protected. An adverse credit rating by
receiving a credit default can impact you applications for credit for 5-7
years. Most people don’t realise the impact of receiving a credit default until
it’s too late. A credit default can impact your applications for any credit
such as obtaining phone or internet accounts, or even various other home or
business services. A credit default is something that can be avoided by simply
understanding why people have issues, and how they can be avoided. By being
more informed about people who deal with a credit default , you can help to make
sure that you do not find yourself in the same situation. While there are seemingly
endless causes for a credit default , there are three major causes. Know these,
as it can help you avoid a credit default .
Unknown Missed Payments
Many people only realise they have a Credit
Default when they are declined for some form of credit. There has been
a credit default listed on their Credit Report and it has resulted in the
decline. They may not even have any had any financial issues, but may have only
mismanaged a bill or a service or phone contract. You may think your bill has
been taken care of by closing the account; but if you cancel a contract early you
may still have cancelation fees payable. It is quite common for the fees to
cancelled a telephone contract to be anywhere from $2000 to $3000. The Phone
contract will at times include the cost of the mobile handset, which can run
into thousands of dollars. Other instances where a credit default is listed can
be where a person has moved house, and there is an outstanding amount owing
from a phone or service bill.
Known Missed Payments
Some people, however, are completely aware
they are facing credit default s, but they are facing financial hardship and
struggling to make their commitments. People do not simply decide to not pay
their bills, it is a result of some other circumstance that puts them into this
situation. The various situations that may put you at risk are:
Divorce
Sickness
or inability to work.
Loss of a
job
Failed
Business
In these situations there is usually a loss
of an income, but in the case of divorce there is an emotionally devastating
event that affects how a person operates in their everyday life. There may be a
change in living situation for both parties with a breakdown in communication,
a ripe situation to cause a credit default .
Over committed by high interest debts
Over the last few years many people have
applied for and received loans they could barely afford. As first home buyers
they may need to spend money on buying furniture and getting their house in
order and hence get themselves into large amounts of unsecured, high interest
debt. A combination of credit cards, personal loans and a loss of an income can
be devastating for a dual income family. The loss of an income in these
circumstances can be from the birth of a baby, or a sickness, or loss of a job.
Being informed and knowing about the causes
of credit default s can help you to keep yourself from receiving a credit default .
Home Loan Default
Things to Consider with a Home Loan in
Default
A home loan default can be one of the most stressful
and difficult things for home owners to go through, and is usually the result
of some form of disastrous life event. This event may be a Divorce, sickness,
loss of a job or income, or even a death in the family causing the financial
troubles. Mortgage companies are in the business of providing loans; not taking
properties, and can often work with those who have a mortgage default to get
them back on track. By knowing what to consider when it comes to home loan
default issues, you can know exactly where you stand, and can begin the process
of getting out of default and into good standing with your mortgage.
How long have you been in Home Loan Default?
The first thing to work out is the length
of time that you have been dealing with a Home
Loan Default . A lender may only allow a default to last for a few
months before proceeding to foreclose on your property. The longer you are in
default; the more you will have to pay to bring the arrears up to date and pay
the legal expenses.
What is the Cost to Get Out of a Home Loan Default
The cost to bring your home loan default
back to normal will usually require paying the entire payments that have been
missed. Some companies are willing to work with you to help you make the
payments; and often require a larger initial payment on the missed payments,
and then increase the monthly payments to make up the difference. While this
can be more of a financial burden, this is a great way to get out of home loan
default. The only way to really know the exact $$$$ value of your home loan
default is to ask your lender, as there may be legal and other expenses you
will need to pay. Knowing the exact cost will allow you to form a plan to pay
it off.
How Much Time do you have to get out of
a Home Loan Default?
This will be dependent on your lender and
you will need to speak to them to find out. If your default has been there for
over 3 months your lender may require the full debt to be recalled. Which means
you will need to pay for your whole loan, not just the arrears. The only way to
determine this is to discuss your options with your lender.
Once your home loan is in default the timer
is ticking away. Generally you will have 3-6 months before legal action is
taken to seize your property.
The best method in these circumstances is
to recruit the services of a professional who works with Home Loans in default,
as they may be able to negotiate a satisfactory settlement of your home loan;
this may entail be negotiating with your lender to keep your debt, or to
refinance to another company.
Bad Credit Loans
Bad Credit Loans and Paying Bad Debts
While everyone likes to turn a blind eye to
credit and debt problems, they do exist; there are people who have to deal with
them every day. Some people have bitten off more than they can chew; whereas
others have been affected by rising costs of living mixed with rising interest rates.
For some people, the only way to take care of the loans and debts that they
have is to take out a loan to help pay those debts. One bigger loan can be
easier to pay than multiple loans and debts especially when they are in
arrears, or in default. Most creditors and lenders charge a default rate
sometimes adding 4-10% interest to the existing rate, making a bad credit loan
essential to getting ahead. Bad Credit Loans do exist, and exist specifically
to help people who have found that they are having trouble with debt. Applying for
loans to pay off bad debts can be confusing, however. There is a simple way to
go about using bad credit loans .
Understand Your Debt and your Credit
The first step in using a loan to pay off bad
debts is to understand exactly where you stand. If you are looking for bad
credit loans , you should be transparently informed of your current situation.
You should know how much you owe each creditor, how far in default you are, and
how much interest you are paying, and if a creditor has listed your default
with a credit reporting agency . By knowing all of the numbers and information,
you are better suited to know if a bad credit loan will put you into a better
situation.
Find a Company That Will Give you a Loan
The next step is to find companies that are
willing to provide bad credit loans . By knowing what companies offer bad
credit loans and what ones do not, you can help yourself save time
through applying with the right company first time. The best way to find the
right company is through the use of a Mortgage or Loan Broker, they have years
of industry and product knowledge that can save an enormous amount of time in
the application and loan research process.
The Bad Credit Loan Application Process
The application process is just as
important as the research and information gathering process. When applying for
a Bad Credit Loan; lenders require a list of documentation to be submitted with
the loan application. This includes 100 points of Identification, a list of
assets and liabilities, a copy of your credit report and a list of the outstanding
debts you are looking to pay. All this information needs to verified using
documentation. Once this information is put together, the lender assesses the
information against their loan policies. If you, or you and your Loan Broker
has done the right job an approval should be on the way.
Use the Money on Debt
Bad Credit Loans may be a little more
difficult to find, but they are available. If you make sure that you know what
you are getting into and what you need, they can be a good solution to a bad
situation. By being careful and patient, you may find the help you need to
remove your financial stress and regain your life.
Bad Credit Mortgage
How to Get a Bad Credit Mortgage
Many people who have bad credit feel as though trying to get a mortgage would be impossible. The idea follows the norm of society; people who have bad credit simply do not get new loans, like mortgages. What people do not realise, however, is that there are companies out there who specialise in offering bad credit mortgages to people who want to be able to own their own home, but don’t know what to do. People with bad credit come to these companies and manage to get mortgages; while the interest rate may be higher, people who can afford the payments can get a mortgage just as others do. Once you have a mortgage, refinancing is possible down the track that could provide improved interest rates. Many people feel that the process of obtaining a bad credit mortgage can be difficult and complicated, but If you follow simple steps, obtaining a mortgage can be easier than you realise.
Know What You Can Afford
Obtaining a bad credit mortgage is achievable, but you should check some details to ensure you end up with the right loan. One way that you can seriously help yourself obtain a bad credit mortgage is to know exactly what you can afford, and what is realistic. Trying to get a huge mortgage may not be realistic for people who have bad credit. By knowing exactly what you can afford, you can make sure that you are not putting yourself from the frying pan into the fire.
Know Your Credit
One incredibly important step in trying to get a bad credit mortgage is understanding exactly where your credit stands. By knowing where your credit rating stands, you can source the appropriatte lenders who provide bad credit mortgage s for your circumstance. Some companies work with very bad credit, where others deal with slightly bad credit. Understanding your level of credit impairement will lead you to the correct company and Mortgage.
Your House and Other Fees
Once you understand your situation and what you can afford you are in a position to start looking for a house. If you have found a specific house that you want a mortgage for, the purchase price will determine other Government fees and Stamp duty, as well as lenders costs you need to pay (use a mortgage calculator otherwise a mortgage broker will tell you). Each state has different Government fees when buying a house.
Find Companies that Offer Bad Credit Mortgages
After you have figured out your credit, how much you can afford, and how much money you need, there is still some job ahead of you. The final piece of the puzzle is to search the companies that offer bad credit mortgage s. The best way to approach this is through a Mortgage Broker who specialises in Bad Credit Mortgage s. You may research lenders and products yourself, but it will take more time and quite often when buying a house there is not a lot of time to do this.
It is important to search out the right companies that can help you in your quest for a mortgage, because applying for multiple loans can hinder your chances of obtaining a bad credit mortgage , as each enquiry gets listed on your credit file. A specialist mortgage broker will assist with obtaining a successful application ideally the first time.
Once you have been able to find the Mortgage Broking Company that will offer you a bad credit mortgage , you are on your way to securing a mortgage. Some people do not realise that even people with bad credit can own their own home. While getting a bad credit mortgage can be more difficult than a traditional mortgage, it is still possible.
Debt Consolidation - Other solutions
Over the last few years Debt Consolidation has been the cliche' term used to describe bringing all of your loan accounts into one. The point of view is that this will alleviate cashflow issues, or at the very least give you more monthly cashflow to live or do the things you would like to do. Debt Consolidation brings to mind a course of action that will give peace from the stresses of bad credit, mortgage arrears or Home Loan defaults, or even Credit Defaults. This is quite often not the case. Loan Saver Network has been working in the Non Conforming Arena for 3 years and helped many people with Debt Consolidation , and have come across many mis-guided beliefs. The end result for these clients is that they are put into either a situation they cannot get out of without a credit default being listed, or they are left paying quite a large monthly payment because they don't qualify for traditional loans.
There are many things to consider when consolidating your debts:
Lender Policies - Each lender has a policy around Debt Consolidation. Choose the wrong lender and you could be declined.
Previous Conduct - Most lenders don't like to refinance loans that are currently in arrears. Some lenders are set up to handle bad credit but still have policies they must adhere to.
Equity - Each lender will allow a certain amount to be borrowed against your property. This is represented as LVR Ratio (Loan to Property Value Ratio)
Income - Does your situation require Low doc or can you verify your income?
If you are unable use Debt Consolidation there may be another course of action, speak to us before you take any steps. See other solutions below. There are many avenues to sort out a financial mess.
Debt Negotiation
Debt Agreement (with Lender)
Part 9 Debt Agreement
Part 10 Insolvency
Bankruptcy
Debt Consolidation
Personal Loan
Gifted Moniies (From Family/Friends)
Loan Redraw
Refinance
There are other avenues, but these are the main ones to consider. Quite often Debt Consolidation will over lap into these other areas. In all circumstances there are many things to look at the identify an appropriatte course of action to alleviatte the stress of Loans that are in default. I would like to highlight the word "appropriatte" in the previous sentence. At times bankruptcy is an appropriatte course of action, at times a Part 9 Debt Agreement is an appropriatte courtse of action. At times Debt Consolidation will not alleviatte the credit or repayment issues. I have spoken to many clients on Debt Agreements where a Part 9 debt agreement has been their saviour, and others where they were recommended to declare an inappropriatte bankruptcy. It is a committment of Loan Saver Network that our client's achieve an appropriatte solution to their issues, which could include Debt Consolidation , Part 9 Debt Agreement, Part 10 Insolvency, Bankruptcy or a simple refinance.
For Information on any of these topics, or for a Free assessment of your situation Contact Us or Apply for a Loan
Other Topics:
Debt Consolidation - The Facts
Debt Consolidation Loans - Example
Home Loan Default | Mortgage Default
A Home Loan Default or Mortgage Default comes under a number of definitions, but all with a similar meaning. Mortgage and Home Loan Default, Mortgage or Home Loan Arrears. all arise when the loan contractual repayments are not being met.
You Home Loan or Mortgage will need to be in Default for 3-4 months before an eviction will take place. There are many processes in place prior to an eviction notice and finally being evicted. This allows an experienced representative to halt or mediate the process to enable sufficient time to effected a refinance or repay the Mortgage or Home Loan Arrears.
The first step in the process is to establish the stage in the recovery process that the lender is up to. This requires authorisation from the client to allow a third party (Loan Saver Network) to mediate, discuss and obtain information to suitably assess a Mortgage or Home Loan Default situation.
Loan Saver Network is effective in resolving Home Loan and Mortgage Defaults. Resolving a Mortgage or Home Loan Default is dependant upon may things, the best contribution you can make for a successful resolution is act now. Do not procrastonate. One day can make a significant difference in resolving Home Loan Default and Mortgage Default.
Below is a list of items than that we need to verify to enable a solution found:
Is there sufficient equity to cover the Home Loan Default or Mortgage Default?
Is there sufficient servicabilty?
Will future repayments be made on time?
Is your property acceptable to the lender for security purposes?
Do you have credit defaults listed on your CRAA (Veda) Report?
If so, what is your level of credit impairment?
How far in arrears is your mortgage?
How much in arrears are your other loans?
One of the very important item for the new lender is the story of your credit issues. The lender will want to know what has happened to cause the credit problems, and if this loan is provided will the situation continue?
If you have any questions regarding Home Loan Default , Home Loan Arrears , Mortgage Default , Mortgage Arrears or other matters. Please contact us or Apply for a Loan , there may be a solution to your issue.
Other Informamation:
See: Consolidate your Debts | Mortgage Arrears | Home Loan Arrears |
Credit Repair Examples
Below are samples of where there has been success in repairing credit
Example 1:
Related Information:
Credit Repair
To analyse your Credit Report or if you are struggling to source finance. Simply contact us for more information.
Contact Us
Credit Repair
Is it possible to repair your credit file?
This is one of the questions most asked by our clients. Credit providers must remove or amend incorrect on credit files. You may have a good chance of amending your credit file if:
You kept details of the credit contract that caused the credit default?
Will the credit provider or a third party accept fault for the breach in credit default.
You cannot amend your credit file in matters of fact
or public record.
For related information on credit repair see below:
What is a Credit Default?
Credit Defaults and Credit Reports
To analyse your Credit Report or if you are struggling to source finance. Simply fill out the FREE Credit Anaylsis Form or contact us for more information.
Contact Us
Credit Defaults and Credit Reports
They are a fact of Life. There will always be a form of record keeping to attempt to track the credit history of a prospective client. For all the misgivings and bugs in the current system, the credit tracking system will be there for the foreseeable future.
A typical Credit Report can contain a multitude of information including:
Given names and alias's.
Drivers Licence number
Past and Current Addresses
Work Histroy
Credit Enquiries
Directorships
Paid Credit Defaults and Unpaid Credit Defaults Defaults
Bankruptcy, Part 9 Debt Agreements and Part 10 Insolvency Agreement Information
Judgements
Court Actions
Plus other information as it becomes available.
If you have a question about your credit file, or you have been declined a loan because of your credit history. Contact Us or Apply for a Loan for more information.
Related Information
What is in a Credit Report ?
Why was I Refused a Loan ?
What is a Credit Default?
A Credit Default is a negative statement that is put on your Credit File to indicate you have broken an agreement you went into in regard to some form of Credit you have had. Credit defaults may show up for a number of reasons:
Broken Telephone Contract - People are often unaware that the contract for thir phone may total in the thousands of $$$. When a phone service is cancelled or you go to another provider the contract needs to be paid out.
Loan Contract- When you enter into a loan for a car at times the value of a car depreciates at a greater rate than what the loan gets paid off. If in this term you sell the car, or the car gets repossessed the return from the sale may not pay out the loan. In the case of a sale, the sale will simply cease to go through as the car will be encumbered. But in the case of a reposession, the remaining monies can be listed as a default if not paid.
Credit card default - A credit card can be defaulted if you fail to make a payment or the card goes over limit.It usually takes 3 months to recieve a credit default.
Business Debt- If you owe monies to other companies for work or services they have provided and you fail to pay.
There are many ways to recieve a credit defult, but they all come in the form of a a broken credit arrangement.
If you have any questions regarding Credit Defaults or other matters. Please contact us or Apply for a Loan , there may be a solution to your issue.
Related Information
What is a Credit Default?
Whats in a Credit Report?
What does it mean to have a Credit Default?
What is a Part 9 Debt Agreement?
Part IX (Part 9) Debt Agreement is Part IX of the Bankruptcy Act. Part 9 of the Bankruptcy act provides a mechanism for eligible debtors to avoid Bankruptcy. Applying for a Part 9 debt Agreement should not be taken lightly, and you should alway consider the agreement to be part of the Bankruptcy Act and if at all possible should be avoided.
Part IX of the bankruptcy act allows a debtor (you) to enter into a debt agreement with your creditors (lenders) where they may recieve less than the full amount of your debt; and where your debt will be finalised.
Is there criteria for entering into a Part 9 Debt Agreement? For more information regarding Part 9 Debt Agreements see " Should i Apply for a Part 9 Debt Agreement ?"
There are lenders who may provide unsecured finance to Consolidate Bad Debts even if you have credit defaults.
Contact Us or Apply for a Loan to obtain more information on the products available to you.
Related Information
Part X Personal Insolvency Agreement
What is a Credit Default?
Should i Apply for a Part 9 (IX) Debt Agreement
What are the Criteria for Applying for a Part 9 (IX) Debt Agreement?
Below is a list of Criteria that was up to date as of 4th July, 2006. For more up to date information you should see the latest edition of the Bankruptcy Act.
You may not Apply for a Part 9 Debt Agreement under the following conditions:
You have an after tax income that exceeds $55,719.30.
You have Unsecured Debts who's value exceeds $74,292.40.
You own unsecured Assetts who's value exceeds $74,292.40
In the last 10 years you have not be bankrupt, or entered into another Part 9 Debt Agreement or Part 10 Personal Insolvency Agreement (Part X).
There may be other criteria not listed above. If considering a Part 9 or Part 10 Agreement there may be an Unsecured Personal Loan Alternative. See Bad Credit Personal Loans .
Contact Us or Apply for a Loan to obtain more information on the products available to you.
Related Information:
What is a Part 10 (Part X) Personal Insolvency Agreement?
What is a Part 9 (Part IX) Debt Agreement?
What is a Credit Default?
Bad Credit Personal Loans
Refinancing Credit Cards
Credit card repayments can be difficult to maintain. Most main lenders use a personal loan for refinancing credit cards. Problems arise when you try to refinance a credit card that is defaulted. (For more information on what it means to default see the FAQ's section of Loan Saver Network website) Main lenders shy away from taking what they call bad credit loans or credit card defaults
In the case of a Credit card default you will need to source other avenues to cover the debt. As once it reaches the stage where its deeemed a default, the lender will list a credit default on your credit file and want you to repay the whole debt.
If this is the case, Loan Saver Network can help. For more information simply Apply for a Loan or contact us .
Credit Card Default
Credit Card Default is the one of the most common causes of a credit default . Quite often we think it is only a credit card, and it can't be that bad if i miss a payment or two. Once the card is in default, the credit card company not only wants the payment brought up to date, but the whole credit card account paid and closed. This is where a simple credit card default turns into a credit default against your Credit Report .
There are ways to pay out a defaulted credit card, this is by way of a refinancing credit cards with a personal loan facility designed to pay a credit card default.
Loan Saver Network has access to these lenders. Simply contact us , or Apply for a Loan to find out more details.
Home Loan Arrears
For the un-intitiated, this is the last situation your would want to find yourself in. Home Loan Arrears is the situation where the agreed repayments for a loan is behind, and the payments have accrued over the loan amount agreed upon in the original Loan Agreement.
If the monthly interest repayment is $1500 each month and you have missed 2 monthly payment. Then your Home Loan would be $3000 in arrears.
There would normally be legal and other fees associatted to a Home Loan Arrears situation.
For more information you can see Home Loan Arrears Solution, or Contact Us for more information directly.
Debt Consolidation
Loans - The Facts
A lot of us have heard the words
Debt Consolidation but are confused about what they mean exactly and how a Debt
Consoludation Loan might help. In today’s world, with many of us struggling with
paying high interest rates on our debts, such as mortgages, credit card, store
cards, car leases and various other kinds of loans, it just takes one unexpected
event in life like an illness or an accident for debts to start spiraling out of
control and put extreme financial pressure on an individual and their family.
Hence it is essential for you to know what your options are and how a Debt
Consolidation Loan might be able to help, especially if your situation is so bad
that it has had a negative affect on your credit rating.
So what is a Debt Consolidation
Loan ? To put it simply, it’s a special type of loan that allows you to convert
or consolidate all your loans into one single loan. It involves combining all
your debts and loans, whether you are up-to-date with payments or not, into one
loan with a lower overall monthly (or fortnightly) repayment. A common
circumstance is if a person falls sick and cannot work leaving their not so
important loans like credit cards go into default. Just defaulting for one or
two months is bad enough but if you let these defaults run up to 3 or 4 months
or above, it is nearly impossible to catch up. Once you are in this
situation, your cr edit rating will be
affected and most traditional lenders would most likely refuse to loan you
money. Repayment history being the single most important factor in deciding
lending or refinancing potential.
Let us take a real life example
which could happen to anyone:
David was a fully employed office
worker in his mid-thirties on a salary package which comfortably supported his
day to day expenses and that of his family including his month mortage payments
on the family's home ,
car loans and minimum payments on his credit cards. Unexpectedly he developed a
gall bladder problem which caused him to lose control of his bowels. Because of
the nature of his condition, he was forced to take six months off work for
treatment until he was fully recovered.
During this six month period with no
income coming in, the family was forced to pay for their daily living expenses
with credit cards. David was not in a position to pay his loans and defaulted on
his mortgage and car loans.
His loans looked like the
following:-
Mortgage: $202,000 at
$1550pcm
Credit Card: $22,000 at $660pcm –
Also in default with debt agreement to pay $10,000 to close
account.
Car Loan 1: $13,000 at $390pcm (3
months behind)
Car Loan 2: $29,000 at $900pcm (3
months behind)
The
critical things to consider in this situation were:
-
Bank was ready to foreclose on his home and b oth
car loans
- Credit card company was willing to take 10k to close
the account.
- Home Value: $330,000
- Total Loans: $ 254 ,000
-
Current repayments: $3500
Upon his recovery, David assessed
his situation and realised that it was impossible for him to try and pay off all
his defaulted loan repayments, credit cards as well as interest and penalities
etc associated with each of his loans. After being refused loans from a number
of possible lenders and being faced with the possibilty of losing his family
home, David was advised by a close friend to approach a debt consolidation
specialist.
Having looked at David’s loan
particulars and record, the debt consolidation expert worked out the following
deal for him:
Refinance all Davids loans into one
facility.
Loan:
$2 54 ,000
Repayment: $2438
David
reduced his outgoings by nearly $1000 per month, but best of all now has all the
lenders off his back. He is now able to put the past in the past and move
forward.
Debt Consolidation Loans are saving
various families like David's from losing everything they have worked hard for.
It is hence imperative that if you are in a similar situation to know how a Debt
Consolidation Loan could help you. Consult a Debt Consolidation specialist to
get expert guidance on consolidating all your debts into one single debt for
your future financial well being. For more information see Debt Consolidation Loan Example
For information on loans available see Debt Consolidation Loans and Debt Consolidation - Other Solutions
Debt Consolidation Loan - Example
David was a fully employed office worker in his mid-thirties on a salary package which comfortably supported his day to day expenses and that of his family including his month mortage payments on the family's home, car loans and minimum payments on his credit cards. Unexpectedly he developed a gall bladder problem which caused him to lose control of his bowels. Because of the nature of his condition, he was forced to take six months off work for treatment until he was fully recovered. During this six month period with no income coming in, the family was forced to pay for their daily living expenses with credit cards. David was not in a position to pay his loans and defaulted on his mortgage and car loans. His loans looked like the following:- Mortgage: $202,000 at $1550pcmCredit Card: $22,000 at $660pcm. Also in default with debt agreement to pay $10,000 to close account.Car Loan 1: $13,000 at $390pcm (3 months behind)
Car Loan 2: $29,000 at $900pcm (3 months behind)
The critical things to consider in this situation were:
- Bank was ready to foreclose on his home and both car loans
- Credit card company was willing to take 10k to close the account.- Home Value: $330,000
- Total Loans: $ 254,000
- Current repayments: $3500 Upon his recovery, David assessed his situation and realised that it was impossible for him to try and pay off all his defaulted loan repayments, credit cards as well as interest and penalities etc associated with each of his loans. After being refused loans from a number of possible lenders and being faced with the possibilty of losing his family home, David was advised by a close friend to approach a debt consolidation specialist. Having looked at David's loan particulars and record, the debt consolidation expert worked out the following deal for him:
Refinance all Davids loans into one facility.
Loan: $254,000
Repayment: $2438
David reduced his outgoings by nearly $1000 per month, but best of all now has all the lenders off his back. He is now able to put the past in the past and move forward.
Debt Consolidation Loans are saving various families like David's from losing everything they have worked hard for. It is hence imerative that if you are in a similar situation to know how a Debt Consolidation Loan could help you. Consult a Debt Consolidation specialist to get expert guidance on consolidating all your debts into one single debt for your future financial well being.
For more information click lnk to article titled: Debt Consolidation - other solutions and Debt Consolidation Loans - The Facts
For information on loans available see Debt Consolidation Loans
Bad Credit Rating Importance
For most middle class families today, owning their own home is the biggest priority in their lives. It's their dream to someday be in a home which they can truly call their own. But alas not everyone will be able to realize this dream. This is mainly due to months or even years of neglecting their credit rating makes getting finance for mortgages next to impossible.
Credit rating is scored on your past record with your past loans or bills. If you have paid all your monthly dues on time and followed all the guidelines laid down by the lender then it is deemed that you have good credit rating. If you have been late or defaulted on your loans for 90 days or more the lender can list a default on your credit file. If you fail to keep up to date, you could end up with a bad credit rating. In fact any kind of irregularities over 90 days on your part could affect adversely your credit rating. Given the fact that your credit rating is the most important factor in deciding whether you get further finance or not, it is absolutely imperative that you maintain a good credit rating. For more information click on the link to article titled: Bad Credit Trap
