How to stop a bank repossessing my home * stop bankruptcy * mortgage arrears * how to stop a bank repossessing my home * make more money * get rich
Fifteen years ago, if I had known what I know now and had the support and advice been available I would still not have been able to stop the bank repossessing my home. Most of my income had stopped, my borrowings ran into almost a million meaning that the mortgage arrears were growing too fast for me to be able to recover to make enough money quick enough to survive. My plans to get rich or get even richer ended abruptly or were rather temporarily set back as I have long since re-established my financial standing.
How to get out of debt
How to pay off debts fast
How to avoid bankruptcy
How to stop a home being repossessed
If you are wondering how to stop your bank repossessing your home or racking your brains for ways to stop bankruptcy there are support systems in place to help and you should investigate all of them. There are specialist brokers and financial advisors who you will find both sympathetic and supportive and prepared to help and advise you.
Debt consolidation loan
Individual voluntary arrangement
Reduce your utility bills
Earn extra income by helping your friends to do the same
If, like I was, you are beyond the point of no return and your debt problems are insurmountable, you may well have to resign yourself to the fact that you will lose your house and possibly have to declare yourself bankrupt. However, this should only happen if you are unable to make any monthly payments towards your mortgage. Providing the courts can see that you are trying to make regular payments, even if they are not the full amount, you should find them sympathetic to your situation. It is only when you have to admit that you cannot make any payments that they are likely to rule in the banks favour.
Too many people, when they find themselves in financial difficulties bury their heads in the sand and do nothing. They don't change their spending habits, they don't look at ways to save money and cut their monthly commitments and they don't do anything to earn extra money. In fact many step up their spending because it makes them feel better, they continue to pile money on their credit cards and they take a "Why shouldn't I have these things? I deserve them," attitude to their whole lifestyle.
Obviously not the most intelligent approach and most people who have never had debt problems would consider this total lunacy, which of course it is. However, when debt problems become unmanageable, something in many peoples psychological makeup clicks in and their spending patterns and behaviour become almost uncontrollable. Rather like fat people eating more because it gives them comfort despite the fact that it will also make them fatter and more miserable, people with debt problems often go on a spending spree.
If this is you, then you have got to stop this spending habit now, this instance. Spending money on anything other than bare essentials will not make you any happier, it will not solve your money problems and your creditors are not going to go away. All you will do is compound the problems and hasten your way to the bankruptcy courts and having your home repossessed.
If you are able to demonstrate to your bank that you are significantly cutting your monthly spending, they are more likely to act sympathetically towards you. You need to take drastic action because major surgery is required to your financial outgoings.
Cut your credit cards up now. They are not a source of income they are exorbitantly high interest ways of borrowing money that drain your monthly income. Only an idiot uses a credit card to finance anything. Pay them off as quickly as possible or contact them and tell them that you are not in any position to pay and offer them a reduced amount at a set sum every month for a set period. Write to them and say you are considering making yourself bankrupt unless they are prepared to reduce the amount that you owe, cease interest and charges and accept a fixed monthly repayment that you can afford. They will know that if you file for bankruptcy they will most likely get nothing, so something is better than nothing.
Do this with all your credit card and store card companies. If they are prepared to reduce the amount you owe for a one off fee, then a
debt consolidation loan
could significantly reduce your monthly outgoings.
Next, look at your monthly food bill.
The healthiest diet
is in fact the cheapest diet and can cut your monthly food bill in half. You could shed pounds whilst saving pounds by following this diet and feel physically, mentally and financially better off to the tune of £2,000 - £3,000 per annum (based on a family of five).
Turn your central heating down. It is a breeding ground for germs and
switch to a cheaper supplier
these two simple procedures could save you a further £500 - £1,000 per annum. You will feel healthier, you will get fewer colds, your body metabolism will speed up and burn off more calories and you will have more energy to do other things that could earn or save you money.
You don't need to be an accountant to realise that these last two steps will have made you better off to the tune of £2,500 - £4,000 per annum. If you have also remortgaged or taken out a debt consolidation loan, you will most likely be substantially better off every month.
The next stage is to put yourself in a position where you have paid off all your debts and never need to borrow money ever again. The first step is finding ways on
how to earn extra income.