Tips To Avoid Foreclosure
Here are the top 3 tips to avoid foreclosure.
If your money is not making it to the end of the month, it is time to budget and PRIORITIZE.
- Food and Shelter are first: so buy groceries (frugally) and pay your mortgage payment. Although, it is wise to call your lender and ask if they can give you grace for one month. Many times lenders will “forgive” one payment per year.
- Next come utilities: water, electricity, gas, sewer, ect.
- One car payment is next. ONE car not two or three. Yes, you can live with one car, it may be inconvenient but is is doable.
- Cancel all unnecessary expenses. Get a pay as you go cell phone, cancel monthly charges. NO TEXTING. Cancel magazine subscriptions and gym memberships. NO clothes shopping unless absolutely necessary. No eating out and brown bag your lunch for work. Make your own coffee.
Call your debtors and negotiate a reasonable debt repayment. Cancel all credit accounts. If you cannot afford to pay cash for it then you need to re-evaluate your budget.
Consider taking a part time job. Sahm’s can babysit, do laundry or cook meals for others. Full time 9-5 jobbers can deliver pizzas or mow yards.
Find support from the likes of
Stick with it
Not much more can be said here. Do not waiver from your agreed budget. Every dollar should have a name/place.
I am not recommending anything in this article tips to avoid foreclosure that I have not done myself.
We began Dave Ramsey’s Total Money Makeover in 2007 when we were in severe debt and in danger of losing our home. When we started, we had over $15,000 in credit card debt and two car loans. We were putting groceries and other things on credit monthly. We sat down and did our budget and discovered we had to get rid of both car loans, and sell our home to get our heads above water. We did just that, clearing NO money from the sale of our home but starting afresh in a rental. We sold our nice cars and bought 10 year old beaters off craigslist for cash. We did not eat out NOT ONE TIME for 2 years. I became a coupon queen, and my husband and I both took part time jobs. Prior to that I was a SAHM and he worked a full time job. After 1 year all out debt was paid off and after another year we had enough money for a down payment on a home (and still had a few thousand in savings too for emergencies). All with NO credit cards or loans. It was one of the hardest times in our marriage but it has its great rewards. We now own a nice home and have no debt hanging over our head. Cash is king baby! And in a time of economic un-surety, it is nice not feeling overwhelmed.
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