Posted on: 04th Apr, 2004 10:59 pm
A repayment plan refers to an agreement between the lender and the borrower when the latter fails to carry on with the loan payments. The plan helps borrowers in paying off delinquent installments or advances.
You can take the help of credit counseling services if you are delinquent. The credit counselor helps to develop a repayment plan to pay off your credit. As per the plan, you need to deposit a certain amount with the counselor. The counselor in turn pays off your creditors according to the payment plan. In return, he charges you a monthly fee.
Repayment plans may take 4 years or longer to help you get out of debt. Such plans, no doubt, help to pay off overdue bills in time. Even then, you remain responsible for paying off the creditors whose debts are excluded from the plan. You still need to make sure that your creditors are receiving the payments in time. Any change in payments, including lower interest rate or waiving of late fees should also reflect in the creditor's statement.
The repayment plans are known as "relief provisions" and these save the borrowers from foreclosure. Such plans are basically the modification of existing plans for loan repayment.
A repayment plan helps you to get through late payments or missed payments. But it does not remove the details of such payments from your credit report. Under the Fair Credit Reporting Act, such debts remain on your credit report for 7 years or so. Moreover, creditors need to provide the credit reporting agencies with details on the repayment plan.
Related Article:
You can take the help of credit counseling services if you are delinquent. The credit counselor helps to develop a repayment plan to pay off your credit. As per the plan, you need to deposit a certain amount with the counselor. The counselor in turn pays off your creditors according to the payment plan. In return, he charges you a monthly fee.
Repayment plans may take 4 years or longer to help you get out of debt. Such plans, no doubt, help to pay off overdue bills in time. Even then, you remain responsible for paying off the creditors whose debts are excluded from the plan. You still need to make sure that your creditors are receiving the payments in time. Any change in payments, including lower interest rate or waiving of late fees should also reflect in the creditor's statement.
The repayment plans are known as "relief provisions" and these save the borrowers from foreclosure. Such plans are basically the modification of existing plans for loan repayment.
A repayment plan helps you to get through late payments or missed payments. But it does not remove the details of such payments from your credit report. Under the Fair Credit Reporting Act, such debts remain on your credit report for 7 years or so. Moreover, creditors need to provide the credit reporting agencies with details on the repayment plan.
Related Article:
I need a repayment plan to keep my home and stop/ prevent forclosure.
hi lori,
you will have to contact your lender and ask for a loan modification. but a lender will offer loan modification only if you are delinquent on your payments for at least a month. in the process of loan modification, the loss mitigation department of the lender will offer you a repayment plan through which you will be able to pay off the dues. to know more about loan modification, check out the following page:
http://www.mortgagefit.com/know-how/loan-modification.html
take care.
you will have to contact your lender and ask for a loan modification. but a lender will offer loan modification only if you are delinquent on your payments for at least a month. in the process of loan modification, the loss mitigation department of the lender will offer you a repayment plan through which you will be able to pay off the dues. to know more about loan modification, check out the following page:
http://www.mortgagefit.com/know-how/loan-modification.html
take care.