I was thinking today, what should one do when they find themselves in that horrible position of not being able to make ends meet?
I mean, a lot of us have been there, right? Isn’t that why we are here rebuilding our credit?
So while I am doing everything I can not to go down that path again, what can one do if they find they are coming up short?
I feel like it’s everyone’s first instinct to pay the mortgage first, letting CC slide. You don’t want to lose your house, right? But after reading on these forums, it seems a better idea would be to pay CC first because you get a little more leeway with mortgage payments?
My plan if I am ever in a financial crisis is:
-Contact all debtors and see if they offer any support/programs/deferred payment options, etc (should one miss a payment first, before contact?)
-If I have to skip out on paying a debt, skip mortgage first, paying CC since they have the quickest affect on your credit. (Missed mortgage payments while affecting your credit, will not be as much of an issue unless you plan to buy a new home in the next year– correct?)
-Keep in mind that payments missed during a short time period are easier explained than missed payments spread over a long period of time.
I would love to hear others input. I think that it’s valuable info that could help others limit damaging their credit.