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The-Mortgage-Gal

Don't procrastinate when it comes to your finances

Danger of procrastination

Recently, I was up with the birds (literally) but really wanted to sleep a bit longer.

I decided to listen to a podcast rather than get up. The podcast, ironically, was about procrastination.

The general message was procrastinating often makes us feel bad. There are things we want to accomplish or feel we should do, but we choose the immediate gratification/dopamine hit of time in front of the TV or mindless scrolling (or more time in bed) rather than the satisfaction that comes with achieving our larger goals and dreams.

The podcaster talked about procrastinating with both our actions and making decisions.The irony that I was listening to the podcast rather than getting up and tackling my day was not lost on me. There were a few comments the podcaster made that struck home.

Making a decision, any decision, is better than no decision. Human nature (for many of us) is, when facing a tough decision, we freeze. We over-analyze the “what-ifs” and potential outcomes. We worry about what others may think of our choices. We may not even know what our options are.

While procrastinating, opportunities are lost or we dig ourselves in a bit deeper.

The last year in particular has been challenging with higher interest rates and a steadily increasing cost of living. Many families are struggling to cover their bills and put food on the table.

I’ve written columns before about how, if you have equity in your home, it might be wise to consider a consolidation of your consumer debt to free up cash flow. Making lifestyle changes can be easier said than done.

I believe that staying the course and getting your mortgage paid off as soon as possible is always the best plan, but there comes a time when you also need to look at how your finances are affecting your physical and mental health.

When we get behind with our bills or are teetering on the edge of not being able to cover everything this month, we are also concerned about what people might think. We are worried about a call from our creditors asking for a payment. We project a certain lifestyle and feel the pressure to maintain this even though we can’t actually afford it right now. We lose sleep at night thinking about the “what-ifs”.

If you are in this situation and have equity in your home, I encourage you to take action to explore your options sooner rather than later.

I have worked with clients who have never missed a payment ever but their credit scores were in the 500 range (not good) because they are over-extended and maxed out on multiple loans, credit cards and/or credit lines.

Had they reached out sooner, we would have had more options to help them with a fresh start. This doesn’t mean we can’t find options, but there are certainly more available when credit scores are higher.

As a rule I don’t get into the discussion of why you would work with a mortgage broker versus a bank but this is one of those times. I do place many of my clients with chartered banks when that is the right fit.

When you approach your bank your situation might not be a fit for their lending guidelines. They may tell you they are not able to help you and that you will have to sell your home or look at a consumer proposal or bankruptcy.

Selling your home may be the right answer, but before you jump to that place take a look at other options. Pick up the phone. Don’t procrastinate.

If you are working with a mortgage broker, they are able to explore multiple lenders and programs to help you try to find a solution to put you on the right track sooner rather than later.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects

 

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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