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



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

Finance Blogs
best blogs