Like a thief in the night, money problems have a way of suddenly creeping up on you. In most cases, you might have a financial setback while you least expect it. A loved one may suffer a life-threatening condition, or you might lose your job.
If you are unlucky to suffer a blow to your finances, you need to face the problem head-on and get advice from a loan officer here in Nashville. Otherwise, it might lead you down a deep dark hole that leads to financial ruins, especially when you have a mortgage.
Don’t live off the credit cards
As tempting as it might sound, don’t fall into the borrow from Peter to pay Paul trap. After experiencing a sharp drop in income, it’s tempting to put all your living expenses, including mortgage, on the credit cards. While this might keep you afloat for a month or two, it all amounts to a grave mistake.
It means that you are borrowing more money without making even the minimum payment on the cards. As such, you are accruing interests and fines on the cards with each passing month. In no time, you are likely to max out the cards and get buried under a pile of growing debt.
Do talk to your banker
Unknown to most people, lenders are amenable to making concessions if you are having trouble making payments. A quick call to your bank can have you discussing options. Some of the available options include Home Affordable Modification Program, Home Affordable Refinance Program, or HOPE for Homeowners.
Alternatively, you might opt for a reinstatement, repayment plan, forbearance, or even a loan modification. Engaging your lender in a conversation helps you to reach common ground before your finances stabilize. Most importantly, it helps you to avoid defaulting and foreclosure.
Money problems such as loss of income can deal you a devastating blow and lower your ability to pay your bills. Instead of digging yourself deeper, looks for positive ways to overcome this setback.