Written by Matt Wegner
Founder and Lead Counselor, Matt Wegner Coaching, www.financialexcellence.net
Is it Worth Losing Your Home?
A recent article in USA Today mentioned an alarming trend with mortgages today. As the cost of living continues to rise today, more and more people are deciding to stop paying their mortgages. What is shocking about this is that many people are choosing to remain current on their credit cards than to pay their mortgage. In fact, in the two years leading up to July of 2007, an Equifax report showed 38% of people behind on their mortgages were current on their credit cards. Think about that for a moment. How stupid is it to keep your unsecured debt current and risk losing your home in the process? There is no conceivable reason why you should choose your credit cards over your shelter. You have a basic obligation to provide food, clothing, shelter and transportation to yourself and your family. If you are struggling to meet even these basic necessities, borrowing more money is not going to solve the problem. The best way to get out of a deep hole is to stop digging and start climbing. Stop borrowing money. Start paying off debts. Sell some stuff or get an extra job until the debt is paid off. Then make a commitment to never borrow money again. Get on a prioritized spending plan and stick to it to build power over your money. Most importantly, learn to say “no” to wants and live on less than you make.