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Have you ever considered getting a loan modification? If so, you’re not alone. Many people who fall behind on their loans are quick to turn to them, hoping they’ll provide some level of relief. But, many soon realize that a loan modification wasn’t quite what they expected.
The Amount Owed Won’t Disappear:
A common myth behind loan modifications is thinking that the amount past due has disappeared. Yes, the payment may be lower, but that’s because the lender has changed the terms of how you’re borrowing for the current loan. This is in an effort to help you get back on your feet, but the amount owed has likely been tacked on to the end of the loan. You’ll notice too that the loan will take longer to pay off.
Don’t let this discourage you from getting a loan modification if you really need it. It’s still a great option for those who want to get a better handle on their debts.