Foreclosure notices are being sent out left and right at the moment, and many families are being faced with the stark reality check of knowing that they just can not afford their home any longer–or won’t be able to if they don’t start acting now to get themselves out of the red hole of debt.
The important thing is to educate yourself, and realize there is no quick fix for the problems which have probably been accumulating over time.
The other thing you should realize is the sacrifices will be worth it in the long run if you are just patient. The first thing you need to do is make sure that you do not render yourself homeless. You must also have enough to meet your utility bills and foods. Those are the basics.
Anything else is totally optional, and only if it is within some sort of sensible budget. A car may be essential for getting to and from work, or if you live in an area where there really is no public transportation. The high price of gas and home heating oil has really hit us hard in the past couple of years, so you are not alone in your struggles, and there are plans from various oil companies that can help.
Don’t be afraid to ask for help, or too proud. If your financial woes have come about as a result of illness, what payment plan options do you have for your medical bills, medications, and so on. Many of the big pharmaceutical companies have assistance programs, and many chain stores carry generics, some of which are prices at only $4. They are buying in bulk, and pass the savings along to you.
You can go to the library and look up all sorts of information for free in books, magazines, and on the internet. There are lots of non-profits that help with issues to do with money management and coping with financial problems. It may be hard to know where to start, but often just looking for the answer to one question will open you up to all sorts of possibilities so you can get yourself back on track financial and avoid foreclosure.
Start thinking of different things that you could do as a family to try to save yourselves a little bit of money here and there, because it not only all adds up in the short term, at the end of 6 months or a year, you will be very surprised to see just how much money you were actually able to save, or to use to pay down debt.
If you have far too many credit cards, consider talking to the lender yourself to explain your situation and ask if you can have a lower APR. You have probably seen loads of offers for 0% APR. So it is in their interests to keep you rather than let you go off to the other lender, so there is room for compromise. If things are looking so bad that you can barely make the minimum payments on your cards each month, consider a non-profit debt management service. They negotiate for the best APR and basically give you a pay down plan.
Let’s face it, it is ridiculous to save for your kid’s college education if you are swimming in debt. So get your budget in order, and above all, draw up a plan to prevent foreclosure which you can show to the bank or mortgage company. Look at all the real life examples at America’s Debt Diet of how people who looked as though they might lose everything, house, equity and investment in the house, and good credit rating, were able to haul themselves back from the brink by making financial management their second or even third full time job.
You do have the ability to make things better for yourself and for your family if you educate yourself, but it is a tough economy and things might just get worse before they get better. The only sure thing is that nothing is going to improve without some hard work and determination. Even if you don’t think you are at risk of foreclosure at the moment, educate yourself now. Draw up contingency plans as to what you would do if you were ever to lose your job, or become ill, and not be able to make your mortgage payments on time.
Learn more in : The Threat Of Foreclosure Is On The Rise Part 3