Money Management When Facing Foreclosure

If you are facing foreclosure, it can be easy to feel disheartened.  However, your chances of overcoming foreclosure greatly increase when you approach the issue with a can-do attitude.  Part of this attitude means taking on money management habits like you never have before.  You might be impressed by how effective you and your family can be when you get serious about cutting expenses in order to prevent foreclosure!

Living Like a Spartan!

Time and again, we are surprised by how unwilling some people are to change their spending habits – even under the immediate threat of foreclosure.  However, if you’re serious about holding onto your home, cutting out some expenses can make that goal a reality.

What major expenses do you not need?  Are you driving a 2012 model car?  Even if it’s an affordably priced car, you don’t need to be making payments on a brand new vehicle when you’re facing foreclosure.  Get rid of the car, ditch the payments, and buy something reliable in the $4,000-5,000 range.  Take this money management approach with all of your major expenses.

Budget, budget, budget!  Like you never have before.  The results of a strict (and adhered to) budget are phenomenal.  If you’ve never budgeted seriously, you’ll be shocked at how much money you can start saving.

Can you live off your 401(k) or Roth IRA for a few months?  Sure, the tax penalties can be big, and you don’t want to make it a habit, but doing so might mean you can pay your mortgage for a few months.

Keep a can-do attitude as you face foreclosure, and you can reverse your situation!  It’s all about money management!