The short sale is so common phenomenon nowadays as because people keep unpaid mortgage and lose their home on short sale to fill the short on payments to the lender. Now to answer the question whether the short sale is better than fore closure; it is obvious that foreclosure has a huge negative affect on a borrows credit report and it is a huge financial setback and short sale is one of the ways to avoid foreclosure.
So this is very clear that short sale is far better than foreclosure. When a borrower is already 2 or 3 months delinquent to his monthly mortgage payments and the lender send him letters for the payment, the borrower should not neglect those letters and should consult with the lender and let the lender know whatever the problem the borrower has.
The fact lies that no lender or Banks want foreclosure as this is a very lengthy and costly process too. So if there is any way to work out with the lender to avoid foreclosure, it is the best. If the lender sees that the problem is genuine and the borrower is actually showing the very intent to pay and making an effort then the lender will also try to help out something to the borrower. Now the short sale is not the only way to keep away from foreclosure but it is one of the ways that may help the borrower to avoid foreclosure.
A short sale process is really hectic and a real set back as the borrower is losing his dream house and also he may have to pay the deficiency amount too but the thing is that the person can start afresh and as it is told before it does not hurt the credit report as much as foreclosure. So if he can get the finance on track and improve the credit score then he may get a new mortgage too within fairly short period of time.
Millions of people have lost their sleep at night because of the debts to different accounts. The interest rates are high and hundreds or even thousands of dollars have to be spent to make the monthly debt payments. They don’t know how to get out these debts and late payments and defaults are adding to the injury. So for someone who has debts to different accounts and has lost the sleep of night thinking how to manage and pay off these debts, debt consolidation is the perfect solution to that person.
In a Debt consolidation program a person takes out a new loan to make payment to pay all his existing debts. So as this is single account managing it becomes easier and the risk of getting default to different accounts minimizes. Generally the interest rate of these kind of debt consolidations are lower than his existing loans and credit card debts and by increasing the duration of the loan period he can achieve a lower monthly payments. So this makes your monthly budgeting easier and save time.
There are many companies who offer debt consolidation. You need to do a little bit of online research to find out which companies are offering the best service at lower rates in the market. As soon as you sing up with a debt consolidation company the collect agencies will have to stop making calls to you and harassing you. All their queries will be answered by the debt consolidation company on behalf of you. Debt consolidation can also improve your credit score. As you start making payment to your debt consolidation loan on time your credit score also starts to improve.
Once you have gone for debt consolidation you have to be extra sure that you make your payment to the debt consolidation loan on time. If you start defaulting and making late payments still then your problem will never be solve and you may end up paying more even after the debt consolidation. So you need be focus and make the payment on time. And also don’t take out new loans or debts as long as this debt consolidation loan exists as this can make the situation worse.
In this current trend people are using credit cards more than cash. The credit card companies offering lots of benefits on purchasing with it so this offers attract people to carry lots of credit cards for getting all different offers as well as they are making heap of debts too. Everybody always ask that how many credit cards they will carry as their can handle them smoothly. There is no fixed common optimal number of credit cards to have with them but people are asking always that how many numbers of credit cards people should use when the number is defer with every different people.
Carrying too many credit cards is risky for everyone. If you are not well known about the credit cards’ risk factors, you may face lot of problems like paying extra fees, miscalculation of interest and debt unpaid till beyond grace periods. The interest rate is variable in every credit card due to market rate fluctuation and also become as high as it is an unsecured loan type. The high interest rate on your most used cards helps to make our credit too high to repay.
When you fail to repay the credit the lender may seize assets. Maximum credit cards are with two-cycle billing process in which you carry balance but not able to use the grace period for new credit. Even when you payment the lenders will deduct credit balance from their most profitable portion. As a result your high interest balance remains same and going on day by day. In case of late payments the lender may charge late fines for each credit card you are late on payments. Even you use over the limit which also charged fees for over limit use.
The above all case of credit card risks may come to you if you mismanaged your credit cards. It is better to have two or three credit cards of different financial institution and after that when are an expert spender you can decide your optimal number of credit cards using.