It can be really difficult if you are struggling to make your mortgage payments. It can be so easy to ignore what is going on and try to hope that things will just sort themselves out. Sadly this is not the case most of the time and it is important to face up to the problem and tackle it as quickly as possible. If you are able to do this, then you will be far better off as if you ignore it then it may just get worse.
Speak to the mortgage company
The first step that you should take is to speak to the mortgage company. Explain that you are in difficulties and see whether there is anything that they can do to help you. It may be possible for them to give you a payment break so that you can no pay anything for a few months, they might be able to reduce you monthly payments and extend the term of your mortgage or there may be other things that they can do to help. Lenders want borrowers to repay their loans as if they repossess the home they are unlikely to make back enough to cover their costs and it is a lot of hassle for them. Therefore they should be willing to help you as much as they can.
Switch to a cheaper mortgage
It might be possible that you can switch to a mortgage that is cheaper. This will usually enable you to have lower repayments, depending on the term of the mortgage. Compare some mortgages and see what you have to repay compared with what you are repaying at the moment and have a think about whether if you did swap, if it would help you out. Do beware though that there are costs associated with switching so you will need to calculate whether it really is a good option for you.
Find ways to free up money elsewhere
It might be possible that you can reduce the money that you are paying out elsewhere so that you can more easily repay the mortgage. It is easy to just say that this isn’t possible and you have tried it before but prices change a lot and so even if you feel you are buying the cheapest things, this may not be the case. Start by looking at your bank statement and seeing where you spend the most money and whether you can change your provider or retailer and spend less. Things like insurance, loan repayments, utilities and contracts for phones/TV/broadband can be some of the more expensive things that we pay out on. It might be that we are paying more than necessary and could perhaps make significant savings here. There may also be other things we pay for regularly such as food, petrol and toiletries that we may be able to find cheaper.
Compare all prices
Comparing prices on all things that we buy can be a way of making sure that we are not paying more than necessary. Doing this on every item that we buy can make a considerable difference. It might just be that you are saving a few pence here and there but if you do it for every item that you buy then that will really add up. You can use comparison sites online to look at prices of all sorts fof things, even comparing the price of different supermarkets.
Earn more money
Earning more money could provide you with extra income that will enable you to more easily manage the repayments. For some people this will be easier than others as it will depend on family commitments and how much time you have to spare. However, there are jobs that can be done form home, at unsociable hours and that are flexible. This means that there should something available for anyone to do. It is worth being aware that online jobs do not pay as much money. This means that you could end up being paid significantly less than the minimum wage because you could be working for people from other countries. You will also have no sick pay or holiday pay or anything like that but you have the advantage of being able to choose what work you take on and what work you do not.
Sell the house and downsize
One extreme option could be to sell the house and buy a cheaper one. This would normally mean going into a smaller home or moving into a cheaper area or both. This is often not an attractive option as we tend to like where we are living or else we would have already moved elsewhere. However, it could possibly be the only option that you have to be able to afford to live. Have a look at what is available and you may find that you are pleasantly surprised at the options. It may be a relief to see that you can still afford something fairly decent but be free of the worry of not being able to afford the mortgage payments.