Thousands of mortgages come up for renewal every year in Canada. By March 2025, 31%…
How to Reconcile Home Ownership and Money Troubles (and save your house)
You thought about it for years.
There were so many good reasons to buy a house.
And when it finally happened, it was like a dream come true.
Your bank made sure you could cover the payment.
But then life happened…your debt grew, and the money troubles started to spin out of control.
There are many reasons to own your home. That’s why you love being a homeowner. And there’s plenty you can do to keep it.
So start here:
Revisit your budget.
Start with your budget.
What you want to do is figure out what’s discretionary. Where are you spending money, either in stores or on services?
Make cuts where you can. Do you need to eat out so much? Can you get rid of the gym membership? Is there a cheaper place to buy groceries? Are there better, or healthier activities to enjoy with your family?
Be ruthless. When you add up $40 here and $75 there, it can really make a difference.
Ask for better rates
Once you’ve slashed your discretionary spending, look at your regularly occurring bills.
Then call your cell phone company, your cable company, your internet service provider, and your insurance company.
Ask for a better rate, a different plan…anything that will save you money.
Service providers hate to lose customers. They’re expensive to replace.
You’re not done yet. Call your credit card company. Now that you are a homeowner, see if you can negotiate a better rate. Or maybe you can consolidate your bills with one lender.
This could reduce your monthly payments and give you some breathing room.
Sell non-appreciating assets.
Do you have a car or boat that’s worth something? Maybe you own a camper or RV. Or a timeshare that you rarely get to use…or maybe even regret purchasing?
You might also have a second car that, with a little juggling, your family could do without. We sometimes underestimate how much money it takes to operate a vehicle.
If you have assets that aren’t really doing much for you…and if you could use the money to pay off a bill… it’s probably a wise thing to consider.
Get rid of the debt.
Despite your best efforts, you may be thinking, “What if I can’t afford my house anymore?”
There are ways to get out of debt. And, you may still be able to keep your house.
You should know the choices available to you. Speak with one of our Licensed Insolvency Trustees and explore your options.
It’s not the end of the world…rather it could be a fresh start. Good luck.
For more information, call Adamson & Associates at 519.310.JOHN (5646).