A Family’s Guide on How to Avoid Foreclosure
Reality has set in, and you realize that you have more bills than paycheck at the end of the month. The media commercializes ways on how to avoid foreclosure, but they usually will put you in to deeper debt, and just postponing losing your home for a few months to a year. The key to keeping your home is clean up your financial status by spending less land you make, and creating multiple channels of new income if you are not making enough now. You need more money coming into your home, and less leaving your coffers.
First, stop living off your credit cards. Making minimum payments only puts you further into bondage to your creditors, and the interest will eat up any extra money you make. People paying for their purchases at the grocery store with a credit card to feed their families are already in a dangerous position, and need more help than they know. There is no shame in eating rice and beans, instead of steak and potatoes. Clipping coupons, and looking for clearance items in the meat department, and reading the store sale circular for good deals will help you keep your food budget in check.
Saving your home and avoiding foreclosure is easier than you think. It just takes sitting down with your family and explaining the situation in full. Get everyone around the table and make a budget. By doing this together it will help get everyone on board about conserving money, instead of wildly spending it on impulse and convenience items. They will be more aware of this delicate situation and be more helpful in the future.
Get a second job to help regain your financial footing. Working a part time job in the evening can bring in an extra thousand or more a month. More companies today are offering online part time jobs that you can work from home. Making eight dollars an hour without having to buy a uniform, use your own gas, plus wear and tear on your car will make more money than making pizza deliveries.
Start an “Oh My God”, savings account. This money is to be used for the little emergencies that pop up and make you want to whip out that old credit. As quickly as possible, save up 1500.00 to fall back on in the future. This approach will keep you from going further in debt. Another theory is save up one month’s mortgage payment, so if you lose your job, you are not immediately in “red alert” mode.
How To Avoid Foreclosure - Jonny Sterling
