Which Debts Could Lose You Your Home?

By Author: Nicholas Hunt
Total Articles: 434
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Identifying the specific debt you currently have that could result in losing your home is a hard pressed question, but without a doubt if you are in a financial situation that includes debt from many different sources then chances are that the burden in paying off those debts could land you in serious trouble if they cause you to fall behind in making your mortgage payments.

Many homeowners suffering from this serious crisis are finding little in the way of relief from the Government, and each day most are forced to sell their homes in a last ditched effort to get out from under the tremendous burden of their compounded debt.

As a rule of thumb financial experts recommend that your debt exposure should never be greater than 3.5 times your monthly income, but many people have succumbed to using credit cards as a means of juggling their financial burdens without ever considering the consequences of ultimately having added more debt in the form of high interest rates to their already crippling situation. Debt research and investigation by financial analysts have even discovered that a small portion of those using ...
... credit card to stave off debt are actually doing so without care or consideration of paying off those debts.

While there are still many homeowners whose only recourse is to sell their homes as a final solution in recovering from their dismal situation, the underling question that still remains is: what can homeowners who are still struggling do to recover from their financial nightmare before it is too late?

The most practical solution is debt consolidation. There are numerous resources available that almost anyone in jeopardy of losing their home can take advantage of to help tailor a debt recovery/consolidation plan, and while no debt recovery plan is a quick fix or over night solution, many homeowners and others in dire financial situations have found relief in short time.

Debt recovery or consolidation programs differ from State to State and are dependant on the financial circumstances of the debtor, most are non-profit and there are many Government funded programs as well. The typical debt recovery or consolidation plan consists of analyzing the current financial situation of the debtor; help building a monthly budget with repayment strategy and credit counseling to help the debtor develop new methods of sound financial planning and credit management. In 2005 the U.S. Government made credit counseling a requirement before filing for bankruptcy.

About the author: Nicholas writes for http://www.debtnation.co.uk/ and you can read more about reposssession at http://www.debtnation.co.uk/sell-and-rent-back.html