Instances are not rare when you get bothered by harassing creditor calls day in and day out. The fact that you owe money to someone bugs you inside and slowly nibbles down your spirit. A debt does not only affect one's financial stability but affects his social and family life and jeopardizes his well being.
A number of debt ridden individuals prefer filing bankruptcy as it appears to be an easy way to get rid of debts. But the fact remains that though filing bankruptcy frees you from debt obligations, it does have a negative impression on your credit report. The assets of a bankrupt individual is forfeited and used for paying off the creditors. The mark of bankruptcy exists in your credit report for a period of ten years and you are not able to obtain further credit during this period of time. Moreover the emotional repercussions associated with it are too hard to bear. A good number of individuals opt for debt consolidation mortgage loans to get rid of their debt obligations. A debt consolidation mortgage is one of the most accepted methods of credit repair followed across countries. The procedure followed in this case is simple enough.
A debt consolidation mortgage loan company provides you loan by mortgaging your personal property, mainly home. Most companies finance you up to an amount of ninety five percent of the total value of the property. Once you are able to obtain the loan, you may pay it back to your existing creditors in no time and get yourself debt free. There are certain criteria that are prerequisite while you qualify for a mortgage loan. First and foremost, you need to own the home or property that your mortgage. The value of the property so mortgaged should be more than the amount of loan applied for.
Secondly, the applicant should have a substantial amount of monthly income. He should have the ability to repay the loan he has applied for. And most importantly, a borrower is required to make a down payment as a part of repayment before he obtains the loan. The higher the down payment, the better are the chances of qualifying for the mortgage.
