When a person with a mortgage falls on difficult financial times, it can be difficult to make all of their payments on time. If you find yourself in this sort of situation, you will need to know how to ease your burden as much as possible. There are lots of ways that you can go about doing this, so you need to know what your options are. If you get too far behind with your mortgage payments, you could end up losing your home.
Take a Close Look at Your Budget
You will first need to carefully examine your budget to determine where you can save money. There is a good chance that you can find numerous places to cut back on your spending, at least for a while. Whether it is your cable bill or perhaps an expensive hobby, this is something you will have to do. Tightening your belt for a while is well worth it if it means being able to keep your house.
Find Ways to Boost Your Income
It is also a good idea to look for ways to raise your income as much as possible so you can make your mortgage payments on time. Ask your employer to see if you can get some overtime at work, or even a raise. Getting a part-time job can help out a lot with supplementing your income as well. If you have a particular skill or hobby that you are good at, you might want to consider making money from it. Even a little bit of extra income each month can go a long way towards getting you through a tough financial period.
Rent out a Spare Room
While the idea of renting out a room in your home to strangers may not be very appealing, it can really help you with getting your mortgage paid off faster. It is important that you take a close look at the terms of your loan to see if this is allowed. You should always speak with your lender before taking in any renters. Take some time to consider how much you are going to charge so that you will be able to get a fair amount for the space you have. There are numerous websites online where you can post listings for a room to rent.
Take Out Another Loan
You should look into taking out another loan to help you with making your mortgage payments for the time being. This can be a very good idea if you are expecting to get a raise at work or make more money in the near future. If you think that your financial situation will stay the same for a while, you should avoid this option. One of the reasons that a lot of people are hesitant to do this is because it puts even more financial strain on them. While another personal loan can help you out, it can also work against you. Take the time to weigh and pros and cons of this before making a choice.
Contact Your Lender
If you expect to have trouble making your monthly mortgage payments, you should definitely contact your lender right away. There is a chance that they will be able to work with you to some extent. This is something that you should do regardless, because it’s always better to let your lender know what is going on. Your lender might be able to give you a longer loan term with reduced payments. You can also ask if they would be okay with you not making the next couple of payments. There is never any guarantee that your lender will be amenable in this way, but it’s still worth checking.
Turn to a Debt Counselling Agency
A debt counselling agency could really help you with getting your difficult financial situation under control as effectively as possible. Organizations like Citizens Advice can provide you with valuable information online or over the phone. Some of these services are free while others will require you to pay a fee of some kind. Take some time to explore these options so you can get the help you need right away.
Look at Your Insurance Policies
If you have an insurance policy in the event that you can no longer work, you should make a claim with your provider right away. Mortgage Payment Protection Insurance or MPPI can really be of help in this situation. Make sure that you know exactly what insurance you currently have. Your insurance could also help you out by providing you with temporary sick pay.
Anyone who is having trouble with covering their mortgage payments needs to explore every avenue available to them. The last thing you want to do is ignore the situation in hopes that it will get better, because it will likely only get worse.