When Is It Time To Get Serious About These Fees

Category: Finance, Credit.

Most borrowers pay little attention to the" fine print" on a credit application.

Unbeknownst to them they are committed to a legal contract that is heavily weighed in the creditors favor. Most shrug their shoulders, promise themselves they ll never get in trouble with their credit card, and sign away. Yet again the" I want it now" mind- set has overcome better judgment. What is the real cost of bad credit? That legalese at the bottom of every credit application, that few seldom read, clearly outlines what will happen if you break your promise to pay on time. There is the obvious increase in borrowing costs, not to mention the hassles of opening up new credit lines. What about the added stress to your family, missed opportunities that having good credit would have allowed you to capitalize on, and the fact that now you are" marked" as a bad credit risk with your financial history open for all potential lenders to see?

The extra interest you pay is only scratching the surface of the problems created. Even if your problem is short- term your creditors do nothing to help you. These fees do nothing for you, but help the creditor in a couple of ways: They cause you to focus on their bill instead of another creditor s bill. They simply enforce the credit agreement and hit you with some fat fees. The creditor makes more money off you because of the late fees you agreed to pay when you signed the agreement. If you fall behind several months in your house payment you may be hit with huge fees that have to be paid in full to avoid or stop foreclosure. If you think the fees are bad on credit cards they are even worse on secured loans, such as mortgages.

When is it time to get serious about these fees? As soon as those show up it is time to pick up the phone and call the creditor and ask to have the fees waived. As soon as you realize you may be obligated to pay late fees, deficiency fees, legal fees, and default rates to name a few. Start by explaining how you plan to get current and let them know you need their help, not their fees. That is why we take the time to meet with our clients and explain ALL of their options to provide comprehensive foreclosure help. There are many reasons why homeowners sometimes are unable to pay their mortgages and every situation is unique.

No matter what your situation, you have options and we can help you stop foreclosure.

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