Debt Calculator

The Federal government considers a debt burden of more than 40% of your gross income an indicator of financial distress. Think about it this way: if taxes are eating up 25% of your salary, you’re saving at a healthy 15% clip, and your loan payments hit 40%, you’re left with just 20% for everything else.

To figure out your debt situation, here are some steps:

• Monthly mortgage payment (including property taxes and insurance) or rent +
• Monthly home equity line of credit or loan payment +
• Monthly car payments +
• Monthly revolving credit payments (furniture, appliance loans, etc.) +
• Monthly student loan payments +
• Monthly minimum credit card payments times two +
• Other monthly loan amounts +
• Monthly child support payments =

TOTAL MONTHLY DEBT PAYMENTS

• Monthly net (take-home) pay +
• Annual bonuses and overtime, divided by 12 +
• Other annual income, divided by 12 =

TOTAL MONTHLY INCOME

Sources of Debt Problems

There are all kinds of ways to rack up debt:

• Credit Cards
• Mortgages
• Car Loans
• Boat Loans
• Student Loans
• Personal Home
• Home Equity Loan
• And More

Debt Settlement Professionals

In getting over the debts you owe, you may need a debt settlement professional to help you address your debt problems, pay down the money you owe and create a plan that will lead to financial independence. Living paycheck to paycheck is no way to live, and yet so many Americans do live that way. Losing sleep at night, heart disease, high blood pressure and more are all caused by the kinds of stress that come from having too much debt. Talking to someone who has counseled others, who has created successful plans for other people and who has seen large debts and small debts is very important.

Last year, mortgage defaults hit an all-time high of 5.4 million, according to national reports. In fact, a survey conducted by the Mortgage Bankers Association showed nearly 12% of homeowners were in foreclosure or were behind in their mortgage payments as of the end of 2008. Thus, it is clear there is a real problem with homeowners being able to meet their monthly payment obligations at this time of American economic struggle.

As part of President Obama’s housing sector rescue program, this bill technically gives permission to judges to reduce any principal and interest rates on mortgages in trouble. Previously a bill was passed giving judges the authority to modify car loan and student loan payments, but mortgage modifications were not a part of that particular bill.

This mortgage modification bill is meant to persuade banks to help trouble borrowers more, by providing more arrangements and alternatives to bankruptcy. However, the bill’s critics still think the increase in current bankruptcy fillings will make mortgage rates higher and be more damaging in the long run of the housing industry.

As a compromise, Housing Secretary Shaun Donovan developed a compromise which includes the limiting of bankruptcy options for homeowners. This limit allows the bankruptcy option to only be available to those homeowners who have previously tried other methods of assistance. Thus, if a homeowner wants to file for bankruptcy loan modification, the homeowner must first approach the lender about other solutions. In addition, lenders shall get 30 days to draw up alternative offers and possible bankruptcy alternatives. This compromise also allows judges to look at each individual case to see if the terms from the lender fit within the housing plan of debt-to-income ratio of 31%.

While many of the nation’s representatives feel this bill is certainly flawed in some areas, most feel it ensures bankruptcy will be a homeowner’s last choice when it comes to their mortgage options. Those banks and lenders who choose to participate in this Hope for Homeowners loan modification program will get an incentive of federal insurance from $100,000 to $250,000, permanently.

Those homeowners who feel they need help negotiating with their lender because they’re behind on mortgage payments can seek assistance from professionals at The Feldman Law Center (www.FeldmanLawCenter.com). The Feldman Law Center can help answer questions for those homeowners who want to avoid foreclosure. 800-470-0865

Private Loan for Bad Credit Labeled Students Approval Procedure

Before actually applying for the loan, doing proper due diligence is necessary. You can begin by calculating your student loan payments for the future. This tool will help you compare student loan offers from different companies and help you find the most suitable student loan repayment plan for you.

Once you’re done comparing student loan offers, choose the best offer mainly based on the future rate that you will be paying once you’re done studying. Continue to apply for the loan you wish for and make sure the lender runs a legitimate business.

Paying Back The Student Private Loan – Am I Stuck with Bad Credit History?

If you have obtained a few student loans during your studying period, consider joining one of the many beneficial student loan consolidation programs. They will help you merge all your debts into one. A student loan debt consolidation will also help reduce your rate, create one monthly payment and even may trim off a part of the interest you owe.

Regarding bad credit, don’t worry about it too much. When consolidating your loans your credit ratings will improve dramatically because, in fact, you have just paid off all your debt at once.

The internet is a great source to find bad credit student loans information and options available, be sure to do research before applying for a program.