Your mortgage payment is one of the largest fixed payments you’re going to make each month. If you have an adjustable rate mortgage your payment can escalate and climb above your accepted budget. When your mortgage is eating up a large percentage of your paycheck you need to consider other options.
One option you have is to take in more income. With the economy struggling there are not a lot of new jobs, so finding a higher paying job is probably out of the question for most people. If you can’t increase your income another option is to drastically decrease your expenses. If you ate out 3 times a week – maybe it’s time to cut that to once a week. If you bought new clothes for $300 each month, drop that to $75 a month. There are ways to get creative and save money on your monthly expediters.
Let’s say you’ve done everything you can to save money and your mortgage payment is still too much. With Obama’s new foreclosure prevention program you can consider contacting your bank and asking if you are eligible for a loan modification. A loan modification could lower your payment and allow you to stay in the house of your dreams. Not everyone qualifies for a loan modification so don’t be alarmed if you fall outside the rules of the program.
If you are running out of options and your mortgage and other bills are just eating up too much of your paycheck it may be time to consider filing for bankruptcy. It is always a tough decision to make and never one you should make alone. If you think it’s time to consider bankruptcy, get professional advice from a law firm that cares. We have provided bankruptcy services in Arizona for a number of years and would be happy to sit down with you and discuss your personal situation.