Statewide Associates Group

Save Your Home From Foreclosure

Today’s difficult economic climate has caused a spike in homeowners facing foreclosure. The foreclosure process is a stressful experience that typically results in the loss of your home, so if you know that you are falling behind on payments, it is best to take every possible action to stop the foreclosure. Even bankruptcy may be a better option than foreclosure, but there are many other beneficial actions to consider first:

• Take Advantage of Government Programs: The U.S. Department of Housing and Urban Development offers several programs designed to assist homeowners who are struggling financially. Because the housing market is a reflection of the nation’s economy, the government is motivated to help families keep their homes and stabilize the housing market.
• Contact Your Real Estate Agent: A licensed real estate agent with experience in short sales and foreclosures can be your best friend during this process. With an offer from a buyer, your agent can stop the foreclosure via short sale. Ask about your options.
• Contact Your Mortgage Lender: Your lender will not only be able to provide information about federal programs that can help you, but they may also be willing to adjust your monthly payments so they are more manageable. Foreclosures are actually costly for lenders, so they are reserved as a last resort to recover some of your home’s value. Don’t wait for your lender to call you—contact your lender as early as possible when you are having financial trouble to protect yourself from foreclosure.
• Apply for Forbearance: In some situations, your lender will agree to suspend payments and seek alternative options to recover the amount of your loan. Typically, the loan will be reinstated and you will be required to pay the remainder of your balance in one lump sum. This option is appropriate if you will be getting a large sum of money in the near future, such as an inheritance.
• Refinance Your Home: Depending on the type of mortgage you have, a refinance may be appropriate for reducing your monthly payments and giving you the ability to borrow against the equity of your home. This extra money can help you catch up on bills and stabilize your financial situation.

The sooner you take action to avoid foreclosure, the better your chances will be of keeping your home. If you are facing financial hardship, then notify your lender and determine the best course of action for your circumstances.

Debt Reduction Strategies: Snowball Method

Paying off your credit card debt can seem like an impossible task, but when you take the time to sit down and organize your finances, you can create a realistic plan that will help you become debt-free. One method that has become popular for paying off debt is the snowball approach. Here is how it works:

• Prioritize Your Debt: Gather the most up-to-date information on each line of credit you are responsible for, and list them in ascending order based on the amount you owe. Figure out the minimum payment for each account and plan to pay that each month.
• Allocate Additional Funds to the Smallest Account: Once you have figured out how much you will be putting towards minimum payments, calculate how much extra funding you can put towards the account with the lowest amount owed. For example, if the minimum payment is $15 a month, try doubling it.
• Pay Off Each Account in Order: Once the smallest account has been paid, allocate the funds that were reserved for those payments to the next account. In other words, you will continue paying the same amount each month, but the $30 dollars that was reserved for the smallest account is now being added to the minimum payment for the second smallest account. Continue paying accounts off in this fashion until you have worked through all of your credit card debt.

This method for managing debt is an effective solution, because it helps you stay encouraged through the process as you will see accounts being paid off as you go. Although it may still take a few years for you to pay off the entirety of your debt, this strategy makes it easy to keep up with payments and helps to improve your credit.

By implementing debt management strategies, you can avoid financial troubles and begin saving money for your future. Take the time to plan now and you will enjoy the benefits of financial freedom in the future.

Debt Resources From Statewide Associates Group

With the world experiencing one of the worst economic environments since The Great Depression, you’ll need to make sure you’re armed with the best tools and advice that can help you stave off debt and bad credit. Turn to the following links to find the information you need.

• Minimize debt buildup by using the tips from this article to create a budget.  Sticking to a budget can help you avoid going into debt and help you get out of debilitating debt.
• Get the facts on how to live within your means and minimize debt by reading through this detailed article.
• Read through this article to get comprehensive information on what a short sale is, how it can help prevent foreclosure, and how it works.  
• For those who can no longer make their mortgage payment, read through this article from BusinessWeek.com to find out when you should opt for a short sale of your home.
• Once you decide to short sell your home, you’ll need to enlist the support of an experienced short sale realtor. Use the advice from this article to ensure you hire the type of agent you need to prevent home foreclosure.

WATCH: How To Get Out Of Credit Card Debt

If you’re drowning in debt and unsure of how to get out quickly, then you need to watch this video.

You’ll hear from a knowledgeable financial advisor about the dos and don’ts of dealing with debt. For example, she recommends that you immediately stop adding debt to your balances, which means, no more unnecessary spending. Then, she suggests paying off your smallest balances first. Lastly, she advises you to transfer your large interest payments to credit cards with better rates and explains the process. If you need to get out of debt, then you need to use the tips from this clip.

If you need more advice or financial assistance, then contact a financial advisor today. They can help you break down your debt and make it easier to manage.

Minimizing Debt Buildup

Staying out of debt can sometimes feel like a game of monopoly, but in the real world, you have to spend your hard-earned cash to keep from getting into financial trouble. If you use the tips below, then you’ll have a better chance of minimizing debt buildup and stay ahead of the game.

Call Your Lender and Service Provider
If you know you won’t be able to make a full payment to your mortgage lender, credit card company, or cable and internet provider, then get in contact with them before you are charged a late fee. If you have a good payment history with these agencies, then these service providers may offer you a temporary revised payment plan or a “financial hardship plan.” Furthermore, try to offer them as much of the payment as possible to minimize the amount you’ll owe later and to display an earnest effort.

Create a Budget
The best thing you can do to minimize or prevent debt buildup is to create and stick to a budget. Start by writing out all of your monthly expenses and be honest with yourself about how much you spend on frivolous items, such as coffee drinks, movies, shopping, and entertainment. If you can afford these luxury items, then you may not need to alter your budget. However, if you’re saving up for a new car or having trouble staying out of debt, then slash useless items from the budget and get strict with yourself about saving money you don’t need to spend.

Host a Garage Sale
If you need help paying your bills, then consider hosting a garage sale or sell your items on the internet. This is a great way to earn a little extra cash, de-clutter your home, and prevent debt accumulation. Keep in mind that you can always buy back that 42’’ flat screen T.V. or ping pong table, but it’s very difficult to repair damaged credit.

Debt is a common factor for most people, but that doesn’t mean you have to drown in it. Use these tips and get smart about what you spend to avoid racking up too much debt.