As ever mature person knows, it takes very little to throw your financial train off the track. It happens to most of us at some point in our lives. We work hard, invest, save, and secure a good job. Sometimes we purchase homes or condominiums to rent out as a steady source of income. We think we are safe. But, life has a way of taking sharp turns.
Maybe someone in your family becomes ill with a very serious and very expensive illness. Maybe there is a change in the industry in which you work, and suddenly your business takes a nosedive. One serious illness can clean out a savings account in months (or less). The people who are renting your rental home have not been paying.
Having always been a person of high standards, you start paying bills with credit cards. When those cards are maxed out, you use other cards to pay for these bills. Now is the time when you should consider debt consolidation.
What does debt consolidation do?
In narrow terms, debt consolidation allows you to stop the bleeding. All of your bills are brought together. An expert speaks with your creditors and arranges a monthly payment (paid through them) that you can afford. Of course, you will be left with monthly income to live on, but you will not ride the credit card pony until you are paid out. You should make sure you are dealing with an experienced company with terms, fees, and interests that are lower than you are paying.
What about that renter who is not paying?
Many people rent property and when they sign a lease for 1-year, they do not take into consideration that in a few months they may be transferred with school or work. Others rent their property from you, then sublet the home out to others for more money so that they turn a profit. Why would they turn a profit higher than you would?
Because they do not have anything to lose. They are not ever going to repair damaged walls, broken windows, destroyed carpet or lawns. They figure by the time you find out the condition of the place they will be long gone with some extra dollars in their pocket.
This is not to say that subletting a home is a bad thing? With the right people, it can be a perfect solution. But you have to be included and the paperwork has to legally protect you and your property.
Smart property owners set up a sublet alert which notifies them immediately if one of their properties is being listed to sublet.
Sometimes debt consolidation can be a good option, but do your homework and use a qualified company. Sometimes subletting is a good thing. But, the option of who lives in your property is up to you. After all, you are the one left holding the bag.
Good financial times will come again, just keep moving forward and keep your train on track.
Tell me do you have any of your own tips for keeping your finances in check?