Everyone has experienced financial hardships and has needed assistance in staying above water with the burdens that come with that. One method is federal aid - when a mortgage defaults - is to apply for a loan modification. This could consist of lengthening your loan term to decrease your monthly payment or defer a part of your payment.
While mortgage modification will help you in the short term, it is still important to find ways to get back on track. Take a look at these tips to help you, if you are currently experiencing financial hardship or are in the process of trying to find financial stability.
Use Budgeting Tools: In one of our latest blogs, we reviewed some of the most popular budgeting apps available right now to help keep you on track...recovering from loan modification is no different! Use these apps, such as EveryDollar, to help keep you focused on the end goal.
Only the Essentials: When you are trying to get back on track after a loan modification, it is essential to only spend your money on the necessities until you’ve reached your financial goals. Try and determine what is most important and get rid of anything that isn’t necessary to you and your family.
Figure Out What’s Important: When determining what bills are most important to get on track first, keep in mind what is considered your greatest asset - your home! Set your payments up on autopay, to avoid any type of late payments, on your mortgage and anything else deemed the highest importance. Then focus on paying off everything else once the essentials have been paid.
Once you’ve gotten yourself onto the path of financial stability, you will then be able to get yourself ahead on everything - from your mortgage, to your auto loan, and all other outstanding debt.