You are perpetually short on cash. Many people are. You, however, are tired of having that tightening knot in your stomach as each mortgage payment gets harder to make. It’s hard telling your son or daughter ‘no’ when they need things like books and clothes, and even harder that you always have to deny the niceties you used to be able to afford like music and video games. Next month, because hours have been cut down at work again, you will are going to miss a mortgage payment. Now the threat of foreclosure looms. You know, at some point, unless a miracle comes through, you are going to have to have to reach new terms through loan modification with your lender.
If any part of this sounds like you, if you need to seek a loan modification or are just tightening your belt, here is another round of tips that can help you save your cash and dignity.
Get your credit report
There seems to be no end these days to shysters and greedy bank officials. This is not to suggest that your credit report can, by any means, be legally tampered with. However, this is your personal financial profile. With it, as long as you have been mostly responsible in your credit habits, you should be able to assess where you stand financially for years to come. Check it for mistakes, evaluate your spending habits soberly and take it to the bank when it comes time to renegotiate a mortgage or apply for credit.
Map out your financial self for the next year, then five, ten, and 20 years.
If you have a mortgage, then you are a long-term borrower. Many people make the mistake of seeing their mortgages and other large, long-term loans as entirely separate from their daily lives, as they mostly should be. However, predicting where you are likely to be professionally a few years down the road and what your children will need at school is like a financial crystal ball. Don’t forget to account for things like groceries, utilities, and extras, like gifts and other sundries.