Bills vs Mortgages | Debt Consolidation Part 9

When consolidation won’t work

Mortgage loan modification can help you keep your house.

If you have a whole bunch of little bills that have piled up into overwhelming debt, debt consolidation is right for you. However, if you just have one big, overwhelming debt, and it’s your house payment, it’s time to seek mortgage loan modification.

When to see mortgage loan modification

The housing market, increasing unemployment and a shrinking economy have caused record numbers of homes to go into foreclosure. Some people fell victim to subprime mortgages and some lost their jobs, but the end result is the same.

Many families who were lucky enough to hang onto their houses so far could still be in danger of facing foreclosure, and some are just getting buried by their mortgage payments. If this is your situation, debt consolidation is not the best solution for you.

Get your loan modified

The government has put programs in place to make mortgage loan modification easier than ever. It’s called the foreclosure prevention plan. Mortgage loan modification can lower your mortgage payment by reducing your interest rate, lengthening your term and in some cases even reducing the principal amount owed. And you can read all about it in my eBook: “Loan Modification: The Doorway to Keeping Your Home.”

Combine and conquer

There’s nothing that says you can’t get both. If you have mortgage payments that are too high plus several smaller bills that need to be consolidated, morgage loan modification plus debt consolidation could be a winning equation.