What Causes Foreclosures?

Foreclosure is a scary word. You may have seen your neighbors go through one. At the beginning of the week they were happy and living their normal lives and by the end of the week they were evicted from their home and living in a hotel. With the number of Oklahoma County foreclosures you may be worried about getting kicked out of your home too. Sometimes major life changes happen that will affect your financial situation greatly. There are a few things you should avoid at all costs if you want to avoid foreclosure in the future.

Job Loss
Losing your job is something that nobody wants to have happen. No paycheck means no money to pay the bills. Sometimes it’s just easy to get in the groove of things and expect the same paycheck every month. But what happens if that money stops coming? The bills are going to continue coming due and they won’t accept sorry for an answer. You are going to need to save some money every month to make sure that if job loss does ever happen that you will be covered until you can find another job.

Paying Bills Late
It’s seems like a simple request – to pay your bills on time – but paying bills late seems to be a problem for many people. If you don’t stay aware and up to date about your bills you will find that some are going to slip passed you and become late. When bills become late they tack on late fees and before you know it, collections is calling. All of this goes on your credit and affects purchases you want to make in the future. Worse though, is the fact that when all this happens you are going to have to pay more money than usual and that could play a part in you not being able to make your mortgage payment in full and on time. This will lead to big problems.

Living Beyond Your Means
If you look at the number of Oklahoma County foreclosures you will find that many may have been avoided had the people been living within their means and putting aside a little bit of money each month. This little chunk of change could be your salvation if a financial crisis comes your way. Spending more money than you earn is the quickest way to get yourself into trouble and will only lead to unhappiness and frustration.