Saving & Planning can Help you Avoid Foreclosure
Owning a home is a dream for most families. Unfortunately millions of homeowners are still dealing with the possibility of losing their home to foreclosure.
Thousands more do not realize how close they are to a financial nightmare. Before the mortgage meltdown homeowners still lost their home to foreclosure and usually it was a result of bad spending habits. Stopping forecloure begins well before it ever starts. A solid financial plan and household budget can help families avoid foreclosure if a harship should arise.
A financial hardship, according to most lenders, is an issue such as health problems, job loss, divorce or a failed business that has changed your ability to pay your bills. Financial hardships can not always be avoided. By planning and putting a focus on saving you can overcome most hardships should they arise.
Below are some great tips that can help homeowners be prepared for a financial hardship.
» Save, save and save for more. Most financial experts say having at least 3 months in cash reserves in case of a hardship is mandatory.
3 Quick Saving Tips
- Cut monthly spending by bundling utilities, shopping for lower insurance rates, eating at home, carpooling and conserving energy.
- Avoid bank overdraft fees and other bank fees that can amount to hundreds of dollars each year.
- Pay bills on time to avoid late fees that can amount to hundreds over the course of a year.
» Live within your means. Put off
trips, fancy gifts, that new car and more until you can afford them.
» Make your job a top priority and be
good at what you do. If you lost your income then it could create a
» Make smart investments and build on your IRA should you need to access funds incase of a hardship.