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Today’s post comes courtesy of fellow S&S reader, Becca. Struggling with your mortgage? Becca’s tips will help.
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What to Do When Your Mortgage Becomes Too Much For You
Is your mortgage becoming too heavy a burden for you?
Then take action! You can’t allow this one expense to drag your finances down and leave you broke by the end of the month.
It’s simply not sustainable. And it doesn’t even have to be that way. There are plenty of steps you can take if your mortgage becomes too much for you!
Find a Way to Earn on the Side
Earning a little extra money is the ideal solution to your mortgage problem. It’s all about making sure you have the cash you need to cover your mortgage repayments. When you earn more cash on the side, while keeping your expenses the same, everything in your financial life gets easier.
Increase the Repayment Period
Extending the term of your mortgage is fairly quick and ways way to reduce your monthly payments.
You’ll be paying over more months, so you’re monthly amount will be less. Just remember that you’ll end up paying back more in the long-term because you’ll be paying more in interest.
Find Ways to Reduce Your Monthly Payments with Your Current Provider
Talk to your current mortgage provider, and see if there are ways to reduce your payments each month without increasing the repayment period. Perhaps you can get a lower interest rate. Resources like The Ascent can also show you more options for creative repayment solutions.
Finding a new way forward with your current provider can benefit both you and the lender in the long-term.
But Don’t be Afraid to Switch Providers
If you can’t find a good solution with your current provider, consider switching providers. You may be able to get a better interest rate elsewhere, which would lower your monthly payment and your overall repayment amount.
Consider an Interest-Only Option if Necessary
As a last resort, consider an interest-only option.
Interest-only options can be beneficial for some people for limited periods of time. It’s when you only pay the interest of your mortgage, but don’t pay down any of the actual principal loan balance. So you’re not paying off any of that debt.
This will certainly help you to improve your short-term financial health, but you need to be prepared for the long-term consequences. Think long and hard before applying this Band-Aid.
You may be struggling with your mortgage now, but these options can help you overcome that struggle. And remember, each payment is an investment in an asset. Your future self will thank you for getting on top of your mortgage and working through it!
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