The economic climate is tough and for this reason, a large percentage of applicants looking for loan modification plans are finding it a triple hard to pay off their mortgage loans and other debts while still managing their families and careers. It is for this reason that a large percentage still has questions about the Obama federal modification plan and this concerns have to do with whether it is easier to apply for the same or not. The applicant has to provide financial statements to the lender so they can evaluate whether they will be in a position to save the institution money through reduction of their interest rate, extension of the long terms loans and reduction of the principle balance, through which the applicant is supposed to follow through with periodical reimbursements.In this case, there us an idealistic approach that is followed and this is approval of the federal government debt relief program when the lending institution knows for sure that the applicant will not lose a lot of finances once the reclaiming of the home commences. For this to be done, verification of the properties current values has to be carried out by weighing the depreciation of the property and proving that it is not feasible for foreclosure. Once this is approved, the applicant is supposed to inform the lending institution they would be more comfortable making he making using the lower payment scheme. It is advisable to learn how to fill out the application in order to increase the possibility of lenders approving the proposal. As such, it is ideal to state that the approval highly hinges on the applicants knowledge about applying for the modification plan.Another major way through which to reduce the cost on credit bill is paying through cash and debit when you can. This is considered an ideal way of singling out when savings can be made as well as maintained. It is also deemed important for ensuring that the individual pays all the necessary payments. For those who want to continue with the use of their cards, it is advisable to opt for institutions that offer competitive rates. This will go a long way in reduction of the costs as well as maintaining a positive credit score.