Getting Tight, or Foreclosure Red Flag?

Getting Tight, or Foreclosure Red Flag?

How often do we turn on the news and hear about the recession? It seems everyone is struggling financially these days – to some degree, at least. Many of us have friends or family whose lives have been turned upside down by the economy. But how do we know if what we’re facing in our own situations is just an indicator of the belt-tightening we all seem to need to do, or if it’s a true foreclosure red flag?

Here are just a few things to look for when analyzing your own situation:

  • Substantial decrease in monthly income – some examples might be layoff, unemployment, illness, injury, or divorce.
  • Substantial increase in monthly expenses – maybe you have an adjustable rate mortgage now costing you more each month, medical bills, the birth of a child, or caring for a family member.
  • Living outside your means – this should be an easy one, but for many of us it’s hard to give up the things we had and could afford when the economy was better.
  • Being able to only make minimum payments on credit cards – this means instead of reducing your debt, you’re in fact increasing it, which is a recipe for disaster when it comes to your long-term financial health.
  • Having to decide which bills to pay because you can’t afford them all – if you’re in this situation, you aren’t just a potential candidate for foreclosure, you’re likely facing it. It’s just a matter of time.
  • “Robbing Peter to Pay Paul” – if you’re using your credit cards to make other credit card payments, or to make the house payment, look out! Almost as bad is robbing from yourself by pulling money out of your IRA or 401(k) to make these payments.

If any of these scenarios accurately describe your financial health, and you know you’re struggling to keep your head above water, give us a call today. We’ll see how we can help get you back to better times.

Melissa

Share This Post

Leave a reply

You must be logged in to post a comment.