Knee Deep In Dept

Almost everyone faces financial hardship at some point in their life but depending on the circumstances, it can almost always be overcome. That said, planning your way out of debt can be overwhelming so we've included some strategies to help make it easier. Developing a Budget - First you'll need to realistically assess how much money comes in and goes out. Start by listing all sources of income and then list your fixed expenses such as your mortgage payments. Next, list any expenses that vary such as entertainment and then prioritize the expenses to see what you can cut back on. Contacting Your Creditors - If you're having trouble making the payments, contact the creditor before they contact you and work out a plan that will reduce your monthly payments to a more manageable level. It's important to take this step before your account gets turned over to a debt collector as your credit rating may be affected by that point. Credit Counseling Services - Your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable organization. You deposit money each month with the credit counseling agency which is used to pay your creditors according to a pre-determined payment schedule. Mortgage Lenders - Most mortgage lenders are willing to temporarily work with you if they believe you're acting in good faith. Some lenders may even reduce or suspend your payments for a short time; however, when you resume regular payments you'll of course have to make up the difference. To speak to a Diane Turton, Realtors Signature Mortgage representative call toll-free 1.877.207.3321 or visit the Diane Turton, Realtors Signature Mortgage Website. Debt Consolidation - You'll likely be able to lower your monthly payments by consolidating your debt through a home equity loan as the interest rate will be much lower. Think carefully though before taking this on as the lending institution will require your home as collateral. If you can't make the payments on time, you could lose your home. Managing your debt may seem like a daunting task, but thoroughly investigating all your options and utilizing free resources will help you avoid a financial crisis which could devastate your credit rating and thus your ability to borrow money at attractive rates. Deciding which option works for you depends on your level of debt, your level of discipline and your future prospects.