Falling behind on your mortgage can be much more stressful and frightening than falling behind on the other bills. Most homeowners view the thought of losing their home as one of the worst things that could happen. If you are having a difficult time making your monthly mortgage payments, there are steps that you can take to avoid home foreclosure.

Develop a Budget: A credit counseling agency can help you create a budget that will give you the ability to pay your mortgage. You will determine how much money you bring in and how much money you spend each month. You will also create an itemized list of all of your monthly expenses. You can then find ways to eliminate unnecessary spending and put the savings towards your mortgage payment. This may mean cutting down on recreation and entertainment activities and learning how to be a more frugal shopper. You will develop fiscally responsible spending habits while using the money saved toward your mortgage.

Debt Consolidation: If you are falling behind on your mortgage repayments, you are likely falling behind on other bills. One way to put more money in your pocket to pay your mortgage is to enlist the services of a credit counseling agency to help you with debt consolidation. With debt consolidation, you will combine multiple debts into one single monthly payment. A credit counselor will work with you to determine how much you can afford to pay each month. The counselor will then contact your creditors and negotiate a lower payment and lower interest rate. Once an agreement has been reached, you will send your payments each month to the credit counselor who will then disperse the payments to your creditors. Not only will you benefit from one lower payment and lower interest rates, you will save money while paying off your outstanding debt. You can then contribute your savings towards your monthly mortgage payments.

Negotiate with your Mortgage Lender: Lenders do not want to foreclose on homes, but they also do not want borrowers that are always late with their mortgage payments. Once you have participated in a debt consolidation program and created a budget, you can go to your lender and try to negotiate your mortgage for a better rate. You can tell your lender about the steps you have taken to better manage your money and that you have taken measures to save money that you will use toward your mortgage payments.

If you are in a situation where you have missed a mortgage payment, it is important not to panic and get upset and depressed. By remaining calm, you will be able to think more clearly about your situation and what you can do to avoid home foreclosure. By making some important changes that will make you more fiscally responsible, you should be able to show your lender that you are dedicated to bringing your mortgage up-to-date and you have taken steps to ensure that you will have the money each month to make your mortgage payments.

Author Bio: Get expert advice about debt consolidation and credit counseling from Consolidated Credit Counseling Services, Inc, a