Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles



Managing Your Debts After You Experience a Short Sale


First off what the heck is a short sale you ask? Well, this is when a homeowner finds that they owe more on their home than what they can sell it for on the open market. This is an alternative to letting the bank foreclose on their home when they can no longer keep up the payments. This type of sale is going to hit your FICO score and it may make it hard for you to buy another home for up to a couple of years after the short sale. If you are in this situation here are some things that you can do to manage your debts once you have gone through the short sale of your home.

One of the first things you need to do is to try and get your credit score improved. The best way in which you can do this is start paying off all of your credit card debts. This is probably what got you into the major part of your debt in the first place. Do your best to stay away from those debt consolidators as well. If you go to one of them you are only going to hurt your credit score even more. You need to be able to do this on your own and not use a middle man to get the work done for you.

You will notice that right after you do your short sale that your credit cards APRs will go up and they will also have reduced your limits. You need to call your card companies and try to convince them to lower those interest rates for you. Try and explain to them about your situation and that you have lost your home. Tell them you want to be able to pay off what you owe them and not default on them. Tell them you don't want to have to file bankruptcy too and that you'd rather try and arrange something with them in order to pay off the bill. You would be surprised how much they might be willing to work with you if you are just brutally honest with them.

If you get arrangements made then you need to commit yourself to paying off the cards. The best way to do this is to just take one card at a time. Take the one with the highest interest and pay it off as soon as you can. Continue to pay the other cards but only pay small amounts on them until the one card is paid off. Do this with each card until you have all of them paid off.

Once your credit cards are paid off you need to start thinking about opening up a savings account that is designated for emergency funds only. This probably sounds hard to do but if you end up seeing that you do have some money left over each month it will be in your best interest to set this money aside and put it into your emergency savings account. If monthly is too tough try saving $2 to $5 a day off of extras you might be buying like a stop at the nearby coffee shop for example. It's a good idea to sit down and see how much money you spend on a daily basis, list all that you spend and then see what you can omit and then take that money and save it.

Another thing you can do if you find it's hard to take the money and save it yourself is to see if you can arrange with your boss to send a certain amount of money as a direct deposit into the emergency savings account. If it's money that you don't see coming on your paycheck it's going to be easier for you to learn to live without it.

Stop using your credit cards. Your best bet is to simply keep one card that has the lowest interest rate and then cancel all the other cards and then cut them up and throw them away. You should also make sure that you check your credit report once a year to make sure that there are no errors and if there are make sure you take care of them immediately.



Comments
Post has no comments.
Post a Comment




Captcha Image






BLOG TAG CLOUD
credit score monthly payments more income candidate installment plan consumer lawyer cash debt relief agency debt solution payment behavior credit card debt liability debt programs bad debt learning experience household items monthly budget budget categories credit repair debt management credit card help monthly bill payday loan savings credit card companies debts unreasonable expectations purchases repayment plans financial education finances credit company child spending unexpected expenses credit limit debt traps discounts legal action debt relief gambling debts cable bill reduce debts assets stop harassment introductory offers salary get out of debt pay off bill debt consolidation medical debt tax info personal finances investing become free credit credit accounts loan companies loans loan harassment flat broke domestic support restrict spending teaching children finance hobbies good budget mortgage payments debit card gambling problem mortgages lending companies income home equity deals in writing paycheck info loan amount live within means Consolidation Company children budget monthly payment management tips seperate accounts down payment loan agents low interest unsecured loan payday loan companies debt collector help honesty unemployed prioritizing taking responsibility debt settlement tracking money court appearance Chapter 13 debt free classify bills child support debt past bad debt phone calls building debts overcharging receipt original creditor loan good credit record management advice management program bad debt management charitable organisation school jobs budget rent payments credit card traps credit line full details cash card insurance groceries expenses borrower credit checks less money extra money account fees check card understanding home equity own money younger children total balance creditors modified payment plan credit card common debt traps need money your rights borrow money credit scores credit cards extra payments whole family interest payments debt payment period common debt injury pay off debt financial security debt management advice bills great budget ideas family budget children saving checks checking account credit rating saving money interest rates great budget social services illness losing your job back support handling money paying out debt hospital overbearing bills visualization budget ideas save money understanding purchase protection careful handling invest money rebuild good credit good credit savings account high interest rate repay account interest repay loans specific budget categories control spending regain control debt management tips part time job payment frequency budget sheet emergency savings account budgeting paying bills piling debts debt management mistakes credit history deb consolidation lose your job spend money security loss of income credit card company debt consolidation loans implement a budget debt collectors home debts professional education bank home equity loans debt sickness take control of debt job loss government assistance debt problems second job car loan worksheet filing bankruptcy spending overspending telephone bills debt company help new job account charges credit report bankruptcy trusted friends software cancer medical bill negotiate fly-by-night lending company credit reports comfortable living debt collection agency asset info buying a house good credit rating good debt money live your life order report internet installment plans utility payments family assistance short sale credit bureaus allowance managing debt child support personal finance secured loan ill health making payments saving borrowing chapter 7 paycheck interest rate medical bills bad financial decisions doctors interest house loan credit companies insurances help with debt debt consolidation initial research negotiation ongoing bills losing a job bank accounts



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs