©David Castillo Dominici - freedigitalphotos

©David Castillo Dominici – freedigitalphotos

If you are like most Americans and falling behind in house payments or find yourself in foreclosure, there are some steps you can take to stop or slow the process.  First you need to know how to stop foreclosure and what options are available to you.  There are many things you can do yourself, which can help you prevent foreclosure and gain financial security.

The first step is to just completely rid your self of all the stress and frustration you have been carrying around.  Negative thoughts and feelings can really hold you back from finding a positive solution for your situation.  Once you have stopped the worrying, you can now calmly look at options available to you.

The second step is to sit down and figure out how much money you need every month to make your payments on your property as well as all you other living expenses.  Make sure to factor in every detail; entertainment expenses, groceries, cell phone bill, credit cards, utilities, car payments and add a little extra for unexpected expenses.  Once you know how much you spend a month move onto the third step.

Separate your bill into basics expenses (bills, food, work, car, insurance) and extra expenses (Cable, gym membership, magazine subscriptions etc). The extra expenses are all things that you can cut out of your total number and do without for at least a few months.  Simple things like getting a cup of coffee at a local store can add up over a month.  Remember you’re trying to save your home from foreclosure, so it is worth going without extras for a while.

Most people are very surprised, when they actually look at receipts and calculate how much they ended up spending on unnecessary items, every month.  A gym membership alone could cost you 100 dollars a month, add your cell phone bill to that and you just found yourself 200 or more extra dollars a month.   Do away with enough luxuries and you may have just found the money to save your house from foreclosure.

Some things people don’t consider cutting back on but should are; electricity usage, Internet connection, phone services, like call waiting or caller ID.  It is these little things that you can live without for several months in order to get your finances back on track.

Every time you think of ways to save money write it down, ask your friends for ideas, you may get some advice you never thought of.  Start car-pooling to work, or even to the grocery store with friends and family.  Cut back on name brand buying in the store, look for actual good deals, not just gimcrack advertising.  These are just some of the ways you can help yourself if you are trying to figure out how to stop foreclosure.

Once you have a good idea of where you money comes from and what you’re spending it on, consider getting another job, or ask for a raise at your current one.  Sell some stuff that has been sitting around and you don’t use anymore.  Try the website, craigslist.com, it is a free site you can use to sell your furniture and electronics.  Just remember that when it comes to avoiding foreclosure, start getting creative with ways to cut your spending and increase your income.

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