Living Below One’s Means
In my area, at least, it seems that foreclosures are slowing down. That is a good sign, being that most of the time foreclosure means that pets lose their homes, too. I can’t help but think, however, that some situations could be avoided if people only lived a little less than within their means. I know some families who aren’t spending frivolously and just to have a tiny house or apartment is stretching themselves. On the other hand, I have gone to several estate sales this year where there was no death. It was just about people who walked away or were being foreclosed on. Some of the homes were quite opulent. What puzzled me is that they are gigantic, yet only had two or three bedrooms. It was not as if they had a large home because they had a large family. I just couldn’t help but feel if they had an average sized house and saved money that they would have stayed in their house.
Some people turn to credit counseling just before or just after they get to that point. Of course, there are some negotiations you can make without this. If you have paid on time all along, you can often negotiate a better rate with your credit card company. Do it before you have to tell them you will be in arrears. Unfortunately, some people believe that a credit counselors are going to teach them how to manage money. Not all of them do. For the most part, you pay a fee for them to negotiate with your creditors. Sometimes they can provide a useful tidbit of information about recent laws that keep people in their homes that you may not know, like what is available with the Federal Government’s Homeowner Affordability and Stability Plan.
I think the bottom line is that nothing replaces a healthy relationship with money. We may not always have a lot of money, but if we save the surplus when the sun is shining, and spend it when the storm comes, maybe it will help.
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