Money Management: Mortgage Debt

If you find yourself struggling with mortgage debt, you might find that employing some new money management skills can help pull you up out of your debt situation and help you avoid this debt in the future.

Avoiding Mortgage Debt

The first word of advice for avoiding mortgage debt is an obvious one: make your mortgage payment in full, on time, every time.  This is clear, sound advice most people with decent money management skills heed.  However, there’s obviously more to the problem considering our nation’s current mortgage debt crisis.

Avoiding mortgage debt can largely be accomplished by having an emergency plan.  Most likely, you are paying your mortgage out of your current income.  Whether your income is on a fixed salary or you are in control of your income as an independent contractor or small business owner, you have to recognize that your mortgage is going to remain more or less the same.

Mortgage holders who are smart about money management are putting aside excess income now – while they still can pay their mortgage – in case of an emergency in which they can’t.  If something should happen to you or your income, you can avoid mortgage debt by having funds set aside to pay your mortgage for a few months while you find a new source of income.

Avoiding mortgage debt is largely about having a plan in a time of crisis.

Additionally, you may want to think about refinancing your mortgage now while you are in good financial shape in order to get an interest rate more suitable for your financial situation.