Five crafty budgeting tips after foreclosure
Follow these tips to shape up your budget after foreclosure.
In 2015, approximately 1.1 million houses had foreclosure filings. This is a difficult statistic to confront. Budgeting can be a major step in transitioning out of homeownership. Here are a few tips to assist with budgeting after a foreclosure.
- Prepare a monthly budget. It is important to know the exact amount of your income, debt, and expenses. Examine your debt and expenses. Look for items that can be eliminated or reduced.
- Identify budget shortfalls. Your community may have resources that will help provide necessities and stretch your budget. Call the United Way Resource line at 211 for assistance.
- Prioritize savings. Start to set aside funds for emergencies. Let your goal be to save enough money to cover 3 to 6 months of living expenses. It may take some time for you to reach this goal but emergency savings are needed to help insulate you against future financial setbacks.
- Boost your income. Consider getting an additional job or performing contract work. Decide which option best fits your current schedule. Many state run employment agencies offer assistance in resume writing, job search and skills assessment, at no cost.
- Face your debts. The debts may seem overwhelming but putting a plan together will help relieve stress. Seek professional advice on how to deal with outstanding debts. The National Foundation for Credit Counseling provides the contact information for reliable credit counseling agencies. Bankruptcy is another option to consider but learn the pros and cons before proceeding.
If you have questions about foreclosure, budgeting, or would like to ask an expert, Michigan State University Extension has access to many resources. Visit the MI Money Health page for more information and answers to your questions.