Life is unpredictable. Sometimes, things happen that can affect your ability to pay your mortgage. For instance, sudden job loss, accumulation of debts, an unforeseen house expense.
So, if you’re struggling to keep up with up with your mortgage or debt repayments, don’t worry. Here are eight ways to help you avoid house repossession.
#1 Watch your debts
Maybe your credit card or store card statement doesn’t seem like a big deal today, But, if ignored, it can quickly become a far greater problem. If you keep spending but forget to make repayments, you’ll end up with an even larger amount to pay-off. Don’t bury your head in the sand. Stay on top of what you owe, so you have greater control over your finances and be in a stronger position to manage any future hiccups.
#2 Payback a little, often
Don’t put off repaying your debts. It’s far better to get into a habit of paying regular installments – even if it’s just the bare minimum. And, what you’ll find, over the time your seemingly small contributions have grown into a large sum — greatly reducing the amount you owe.
#3 Pay more while you can
When you’re enjoying good times, it’s easy to take them for granted. But it makes smart financial sense to pay off your debts while you have the money to do it. And, if you overpay, you’re simply giving yourself a helping hand for the future.
#4 Calculate your budget (and stick to it)
It’s easy to lose track of your spending. Be honest with yourself. What can you afford, what can’t you? It’s vital you track your expenditures. Create a budget planner (there are lots of templates available for free online). This will help you calculate how much money is coming in and how much is going out. So, you can easily spot when funds are low. And, this will help you act quickly — hopefully avoiding more serious difficulties down the line.
#5 Find out about your entitlements
Before you start to ransack your empty savings account, find out what benefits or entitlements you might be due. For instance, if you lost your job, you might be able to claim a range of benefits. Or, if you had an accident and now can’t work, speak to a reputable advisor and find out if you can claim compensation.
#6 Seek expert advice
Talk to your bank and your lenders. Get independent advice from Citizen’s Advice Bureau. Also, many charities offer free advice services. These people will have a better understanding of how the system works and can help you identify solutions you’ve not considered before.
#7 Don’t wait for a knock on the door
Debts can mount up rapidly. So, the earlier you act, the better chance you have of avoiding a more serious situation. Even if you’re really worried about the consequences, it’s far more important to address the issue head-on and find out what solutions are available to you. After all, the debt won’t just go away overnight.
#8 Sell Your Home
Another option (if want to pay your debts off in one go) is to downsize your home or sell it. If you want to prevent house repossession, this might be your best option. Companies like House Buy Fast will buy your home and manage the entire process on your behalf.