How will the Bush plan affect your chances of a Debt Consolidation Loan??

Over the past few weeks there has been much talk about a bail-out for mortgage borrowers that are behind on their mortgage payments.

Literally everyone is talking about this topic.

I get at least 2-3 emails a day addressing this issue.

George Bush discussed it and the government is making plans..

Bill Gross (manager of largest bond portfolio with PIMCO) said that borrowers need bailed-out NOT lenders!!!

Jim Cramer from CNBC mad-money had a meltdown the other day concerning Bernanke hestitaing in dropping the discount rate.

SOOOO— The question is: “Does all this really matter to you?” 

AND

“How does it affect your chances of getting a debt consolidation loan?”

Well, that still remains to be seen.

Lender’s have tightened their lending practices over the past few years and made it more difficult to refinance your home mortgage.

Obviously, there are good reasons for this to take place. If these practices would have been in place a few years ago we wouldn’t be talking about a sub-prime mortgage crisis.

The IS the “exact” reason for each of us to stay on top of our credit reports and make sure that we are making our payments on time.

Those with below average credit histories WILL have a tougher time lowering their interest rates and lowering their monthly payments UNLESS– The government has some type of plan to help out with this.. (Don’t hold your breath.)

Even IF they do come up with a plan, I am quite confident that it will NOT benefit most people.

So, what do you do??

It really depends on your individual situation.

IF you are currently able to make your monthly payments on your mortgage your obviously are in a better position than the MILLIONS of American’s that are currently in default. (90 days+ behind on their payments)

I ALWAYS hate to recommend belt-tightening strategies BUT in some cases there is no other alternative.

Sometimes cut your losses (sell the house, etc) is the ONLY option.

No matter what though, a “well thought out”, “clear cut” plan is the ONLY solution.

You must know where you want to be OR what position you want to be in before making ANY decisions.

The first step is:

-Organize eveything and come up with the total amount of debt that you have to be eliminated.

Write it down and post it somewhere just like you would any goal.

I want to know “exactly” what that number is so I know where I stand.

Once you have that number, then, and only then, can you begin orchastrating a plan.

The key is, to put yourself in a position so that it doesn’t matter what the economy does, or what any other outside influence does have an affect on you.

You want to be on the outside of all of this so that a government bail-out, the sub-prime crisis, the stock market dropping, recession ,etc has>>

NO AFFECT ON YOU..

Start today by organizing your finances and coming up the THE number.

Have a great weekend,

William L. Beavers

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2 Responses to “How will the Bush plan affect your chances of a Debt Consolidation Loan??”

  1. johansen8 Says:

    I agree with your post, but of course different people have different lifestyles and purchasing power is most of the time “abused”. I guess it still boils down to “discipline”

  2. Ida Campbell Says:

    I agree with your post – we should be tightening our belts, that’s what I am trying to do. I need to get out of debt with these credit cards.

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