Do you want to know the 5 Steps for Avoiding Mortgage Stress?
Well – you’re not alone.
Millions of everyday Australia’s are suffering in silence from Mortgage Stress and the possibility of losing their home to the bank.
The cost of living is rising.
Employment in a regular job is becoming less secure.
And despite what the experts say – property doesn’t always rise!
The above results in millions of everyday people failing to have the ability to meet their home loan repayments.
This not only causes severe debt anxiety but often lead to home repossession in extreme cases.
This situation arises when home buyers find it difficult to repay the mortgages on time. Certain cautious steps can help you manage your mortgage and eventually combat financial stress effectively.
Follow these 5 simple steps to avoid Mortgage Stress (and hopefully never have your home repossessed by the bank)
Step 1: Talk to your Bank Early!
You must tell your bank or lender as soon as possible when you are finding it difficult to repay your home loan debt on time.
They do understand that unforeseen events happen to people everyday for no fault of their own.
Lenders and banks have the powers to help borrowers in managing mortgages, if notified in advance.
Give them the opportunity to understand your situation by keeping them informed about your financial hardships.
Also suggest ways in which you are planning to tackle your current financial problems. This way they will be able to assist you with corrective measures, if need be. They may even be able to alter your monthly repayments to help alleviate the pressure you’re feeling to meet your mortgage repayments.
Step 2: Create a Budget and Stick to it.
If you are experiencing Mortgage Stress – now is the time to stick to a budget. Look for ways to save money around the home.
You can save on both Fixed Costs and Discretionary Costs.
Savings on Fixed costs can be:
- Electricity – turn off appliances at the wall and lighting when not using them.
- Hot Water – Take shorter hot showers, install a water saving shower head.
- Fuel – car pool with a friend or catch public transport.
- School – if you’re children attend private schooling, it might be time to re-consider public education.
- Groceries – Shop for bargains, buy in bulk, and only purchase “no-name” brands.
Savings on Discretionary costs can be:
- Cancel the holiday you had planned with the family… go camping instead.
- Leave your credit card at home when going to shopping complexes.
- Eat out less and make dinner at home.
- Cancel any “pay TV” or in-the-cloud “movie subscriptions” like Foxtel or Apple TV.
Step 3: Refinance or Consolidate your Debt Quickly.
Talk to your bank or financial planner on if it is possible to consolidate your debt or refinance your home loan over to another bank with a cheaper interest rate. With some personal credit cards have a 20% interest rate, this can often save thousands of dollars in interest payments as it’s better to have all your debt on a 6% home loan than on a 20% card account.
Step 4: Earn Extra Income.
Now’s not the time to be proud.
If you can work – use your existing skills to generate more income. This could mean mowing people’s lawns, offering to clean up gardens, or even clean windows for busy professionals.
Of course you can always talk to your employer about working extra hours and doing over times. You may even need to take on a second job until you get on top of your financial situation.
Step 5: Get help FAST.
If you’re experiencing Mortgage Stress and can’t see a way out – then get help fast. Talk to us – we’ve helped many everyday Australian’s just like you get rid of mortgage stress and avoid repossession.
Get in touch with Property Solutions for Australia today. Call us on (02) 8006 0420 for a “No-Obligation” consultation.
Alternatively you can CLICK HERE and get instant access to a FREE report on the “7 actions you can take immediately when you can’t pay your mortgage!”