How Can Mortgage Restructuring Services Help In Managing Debt?

Are you struggling with paying off your mortgage due to your personal struggles? Well, don’t worry we have got a solution for you!

Depending on your financial circumstances and how much you can afford to pay, the lender may agree to restructure your mortgage by adjusting the terms of your loan. The lender may temporarily postpone your repayments or lower them to an amount you can afford to pay. Although this is not very frequent, some lenders may even agree to lower the interest rate applied to your loan or provide you with a fee waiver.

Find Mortgage Restructuring in UAE to stop your suffering as a homeowner. By changing the monthly payments, you make, along with other terms, a modification can help you keep from defaulting on your mortgage. A mortgage loan modification can be a smart financial decision for you.

Who Can Go for Mortgage Restructuring Services?

Mortgage modification eligibility requirements vary from lender to lender, but in general terms, you must:

Give proof of severe financial hardship, including things like:

  • Chronic disease or disability
  • Passing away of a family member (and loss of their income)
  • Natural calamity or emergency
  • Uninsured property loss
  • Costs of housing suddenly rising, including increases in property taxes or homeowner association dues
  • Divorce
  • Job Loss
  • Facing High-Burden Ratio

Benefits of Mortgage Restructuring

Although a mortgage modification will lower your monthly payments, you might incur higher overall expenditures throughout the loan. Find Mortgage Restructuring in the UAE if you are eligible for a mortgage modification to reduce your payments in several ways, including:

Cutting Your Interest Rate: You can significantly lower your monthly payment by cutting your interest rate by a few percentage points. The step-up method is frequently used in rate reduction changes, and it entails periodic (usually every five years) increases in your interest rate and monthly payment amount.

Increasing the Repayment Period: You can lower your monthly payments by spreading out your loan repayment over a longer time frame. Just be aware that doing so can result in a considerable rise in the total interest you pay throughout the loan duration. However, you can think about refinancing a loan with a better rate if your circumstances alter and you can now afford a bigger payment.

Change from An Adjustable To A Fixed Interest Rate: If your financial difficulty is due to recurring payment increases associated with an adjustable-rate mortgage (ARM), the lender may decide to switch you to a fixed-rate loan that is more predictable and manageable.

Refinancing: Technically, a refinance does not constitute a modification of your mortgage because it results in a new loan arrangement rather than modifying your current one. As it might be difficult for modification candidates to qualify for a new loan, it is rarely a practical solution. But occasionally, lenders would advise borrowers to go this path if they have large assets, they can utilize to cover the debt in an emergency. Talk to your Debt Management company about your condition before finalizing any decision.

If you’re worried about falling behind on your mortgage payments, you’ll need guidance to figure out what you can do. Find Mortgage Restructuring services in the UAE to get informed about your alternatives. Contact Lin International Debt Management to get assistance in negotiating with the bank and taking care of your debt for you!

What Happens When You Have Credit Card Debt?

If you have accumulated a huge credit card debt and finding it extremely difficult to repay it, the best step you can take is to get the assistance of debt management experts. When you stop paying your credit card bill, you will be charged a late fee, you will lose your grace period, and you will also have to pay interest at a penalty rate.

With credit card debt, your credit score will also take a dip if you have delayed your payment for 30 or more days. When you choose to not pay it at a later date, your issuer may also close your account. However, you are still required to pay your credit card debt in full along with interest.

If you don’t pay your credit card debt for a long enough time, your credit card issuer will eventually sue you for not making repayments or sell your debt to a debt collection agency which could then sue you.

Fortunately, it is not all or nothing scenario with credit card payments. This could be a different story if you pay the minimum amount required monthly. While it is highly recommended to pay your credit card bill in full, you must focus on paying at least the required minimum amount if you can’t pay in full.

If you always pay the required minimum amount by the due date, your account will always remain in good standing and you won’t face any penalties and late fees. However, you must realize that paying the minimum amount only every time means you will have to pay interest on the remaining balance at your credit card’s regular interest rate. This amount accumulated by interest can be very substantial when summed up after a few years.

Here is what happens when you have credit card debt and don’t pay it:

  1. When You Pay Only The Minimum Amount Instead Of The Full Balance Due:

The unpaid amount will bear interest at your card’s regular APR. You might lose your grace period, which means new purchases will also accrue interest right away.

  1. When You Don’t Pay Your Credit Card Bills At All:

In this case, your account will be reported as past due date to the credit bureaus once you miss two due dates. Once this happens, your credit score will take a dip instantly. Plus, a late fee will be added to your credit card balance. Plus, your issuer might apply a penalty APR on new purchases but only after giving a notice 45 days in advance.

  1. If You Are 60 Days Behind On Your Minimum Payments:

Your credit card issuer can penalize you by charging a penalty APR to your entire existing balance.

  1. If You Are 6 Months Behind On Your Minimum Payments:

The credit card issuer will consider it a loss for taxes and will have to charge off your debt. In this scenario, they may sell your debt to a collections agency or they might choose to sue you.

  1. If You Don’t Make Credit Payments For 3 To 15 Years:

In this scenario, you will be charged with a lawsuit, depending on which state you live in.

Hence, managing your credit card debt is extremely important. In case you don’t know how to get started or don’t see any impact after trying different tips you find online, don’t hesitate to seek the advice of debt management experts.

What Are the Debt Repayment Options for Me?

Paying off debt is not like getting into it. The repayment takes more time, effort, or extra money. And sometimes, it’s the combination of all three. This is why getting out of debt quickly and painlessly is like a dream for many debtors. They try all the techniques to get rid of the debt amount and live peacefully for the rest of their life.

We know it’s difficult but not impossible. The only thing is you should choose the right method to repay your debt. But, before that, you should get answers to the questions like how patient you are willing to be to pay off your debt, how much risk you are willing to take to do so, and if you understand the potential consequences of debt repayment options.

Based on the answers, you should choose one of the best repayment options from the following list. 

  • Paying It Yourself or As Agreed 

Typically, it’s one of the cheapest options to repay your loan. You will do everything yourself based on the agreement signed between you and your lender. There will be no third-party involvement as you will sort out everything with your lender.

This option is highly effective unless penalty rates and late or over-limit fees are involved. With no extra charges, you will pay what you owe.

  • Debt Management Program (DMP)

If your income is regular and interest rates are high, you should opt for a Debt Management Program through a non-profit credit counseling agency (CCA). The agency will help you pay off your debts with lower interest rates and better repayment terms. The agency has different ways to do so.

Some important things to know about the Debt Management Program is that the debt is paid off in 5 years or less and there are some reasonable fees involved. You shouldn’t worry about the fees as they get counterbalanced by the lower interest rates and elimination of late fees.

  • Debt Consolidation 

As one of the debt management strategies, debt consolidation combines multiple debts into a single monthly payment. It simplifies the payment schedule and provides lower interest rates than you are currently paying on your debts.

Repaying your debt with consolidation will not make the payment easier but keep you stress-free and reduce your amount as the interest rate will get lower. Also, you don’t have to keep the track of multiple loan statuses.

  • Debt Settlement 

When you settle your debt for less than what you currently owe with the promise that you will pay the settled amount in full, it is known as debt settlement. Sometimes, debt settlement is known as debt relief or debt settlement.

It’s a good option because the repayment amount is less and you get rid of the debt at once. Also, there is no legal involvement. Usually, the debt settlement is handled by a third-party company. But, if you want, you can do it yourself.

Of these options, Debt Management Program is the best followed by debt consolidation because both options reduce the interest rates. In the Debt Management Program, you get better debt repayment terms as well.

Should I Collect a NOC After Personal Loan Settlement?

Personal loan settlement is a great way to get rid of lenders’ everyday calls, interrogations, and undue pressure. It gives peace of mind, especially if you work with a reputable and experienced personal loan settlement and litigation service provider. You get out of the process without any complications.

People feel relaxed after settling the personal loan amount. But, most of them commit a major mistake of not collecting a NOC after the settlement. They assume that a No objection Certificate or NOC is of no use after the settlement. The records are digitally maintained and they can recover them online whenever required. But, actually, not collecting a NOC is like inviting problems for yourself. The personal loan settlement and litigation services will not be worth it if you don’t collect a NOC.

In this post, we will discuss some important reasons or benefits to collect a NOC after a personal loan settlement. 

  • You Will Prevent Your Credit Score From Getting Affected 

As soon as you settle the personal loan, you should submit the NOC to CIBIL or make sure your lender submits it. With a NOC, the CIBIL will update the records mentioning that the loan amount is paid and nothing is left unpaid.

If you don’t submit a NOC, your personal loan will be considered unpaid, affecting your CIBIL score. You will be considered a loan defaulter. And due to this, it will be difficult for you to get credit in the future from the bank and other financial institutions.

  • You Will Present NOC As Proof Of The Paid Amount 

Today, everything is digitalized. Whether you apply for a personal loan or personal loan settlement, lenders and other associated institutions will have a record. They will extract the details whenever required and prove that your loan amount is paid. But, things might change anytime.

If the details are not recorded properly, get deleted or the system crashes, you will have nothing to prove yourself. Maybe after 10 years or more, you would receive a notice saying that you have not cleared dues. If this happens, it will be difficult for you to come out of this problem. You might get legally trapped by the lender.

Whether it’s a year or 10 years of personal loan settlement, you will prove it easily using the No Objection Certificate. The best part is no institution can deny this proof.

  • You Will Avoid Legal Complications In The Future 

When banks or financial institutions don’t get details, they end up sending a legal notice to the borrower, no matter how old the personal loan transaction is. Based on the details they get from their systems, they assess the situation and take legal help to get the loan amount paid.

With a NOC, you can show that the loan amount is settled and paid. You will not face any legal consequences because a NOC released from the banks or financial institutions are accepted everywhere.

How To Get A NOC

An NOC is likely to be issued in a few days after the personal loan settlement. You should be a bit more proactive. With the help of the personal loan settlement and litigation service provider, you should write a letter to the bank or the financial institution to issue a No Objection Certificate.

Debt Management Tips That Can Make a Huge Difference

At some point in time, we borrow money from someone to meet our urgent financial requirements. As per research, 70% of the entire population lives in debt. This could be a home loan, a personal loan, or owing money using a credit card. One of the major reasons behind this is the availability of loans as people find it easier to borrow money in order to fulfill their requirements.

Debts can help us to get a better education, purchase dream property, meet medical emergencies, or start a business. Although debt is considered bad, it can bring a huge difference to your finances when managed properly. However, when not managed properly, it can haunt you back. The most common perception about debt is that it is just another name for evil but if you change your outlook on debt, you will notice the other side of it. Debt can significantly benefit you if you opt for the right debt management strategies and disciplined repayments.

Here are some tips for those who are struggling with debt. Spend the next few moments reading below to manage your debts better.

  • Optimize Them All

If you are having several debts then it is time to sit down and optimize your debts. List all your debts, the outstanding balance, EMI of each one, the interest rates, and more. This provides you with an overview of your credits. You will know how much you owe so that you can manage your monthly budget as well.

  • Don’t Miss Payments

You can turn a good debt into bad debt by just skipping or missing a payment. Ideally, there is no concept of a bad loan or a good loan and all loans are similar. However, the payment habit of the borrower is something that makes a loan good or bad. Keep your loan a normal one rather than making it good or bad. Make sure to pay your EMIs every month on the fixed date. If the repayment amount is not fixed, make sure that at least the amount needs to be paid. Paying the EMIs regularly eventually leads you to the day when you will be able to declare yourself debt-free.

  • Prioritize Your Debt

Rates and tenure of different loans vary from one another. As aforementioned, one should optimize the debts to figure out which one is the costliest. Once you find out that, you can work towards closing that particular loan. This will reduce credit from your list and take you a step closer to being free from any debt.

  • Try to Refinance

Loan refinancing means taking a fresh loan in order to close the existing one. It is usually done when a person has more than one loan at a point in time and they are paying a lot of money on EMIs. One takes the loan that is equivalent to the total outstanding amount of all loans and closes all those loans through that new loan. This way, they need to pay only a single EMI instead of paying different amounts to different lenders.

Do you have any other doubts? Debt Management Services in UAE can make everything easier. Feel free to get in touch now to get answers to all your questions.

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