Three Ways You Can Save Yourself From Homeowner’s Poverty
When it comes to home ownership, everyone wishes that they could be free and clear of their mortgage payments sooner rather than later.
The sad truth is that many homeowners bite off more than they can chew when it comes to their home loans.
In fact, a recent study showed that a great number of first time home buyers were actually living off their credit cards, acquiring partially unnecessary debt in the meantime.
If you find yourself in a situation of being ‘house poor”, don’t start to panic. There’s a few steps that you can take in order to shed the stress and worry you’re likely feeling from your current situation.
Tighten Your Belt
It probably goes without saying that anyone in this situation can stand to draw up a weekly and monthly budget in an attempt to tighten their belt and start paying down debts. It can be very helpful to develop a plan with a financial planner, as these professionals can give you exactly the kind of financial advice you need to get yourself back on track. If you come into a lump sum of cash at any point, always put the majority of the money to paying back your debts before buying anything for the sake of pleasure.
Count Your Pennies
It sounds kind of silly, but when it comes to paying down your home loan your change can make a huge difference. At the end of each day, try placing your change into a jar and turning those pennies into extra payments on your home loan. You might be totally surprised at how big of a difference these little payments make. And likelihood is that you won’t even miss them.
Keep It Basic
Take another good look at your home loan. You might find that you’re paying extra costs towards things that you don’t really need. Think long and hard about whether or not you need to refinance in order to find a better loan for you, and remember, finding an institution that will refinance tends to be a lot easier than finding your initial home loan. Shop around to find out if other banks or lenders are willing and able to give you a better deal than the one you’ve already got. However, never jump right into a refinance without checking with your current contract; sometimes these changes are too pricey to be worthwhile.
This guest post is from Allison with HomeLoans.org.
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