It is undeniable that there are people who are still experiencing mortgage stress despite the current low rates. It becomes stressful whenever you can’t afford to make payments on time. It’s more stressful because if you can’t make payments anymore, you’ll likely become homeless. If this happens every month and you feel harassed or you cannot possibly think of a way on how to settle your loan then most likely you are always stressed. Yes it happens and being in that state can lead to financial stress pushing you to use your credit cards frequently because you are out of cash.
Mortgage Stress Nowadays
Everybody dreams to live in a beautiful house or drive a fancy car. People work hard to achieve their goals. There is nothing wrong in buying properties but if the mortgage is way too high then you need to think twice before getting into any kind of mortgage agreement. Most of the time real estate or car dealers make the arrangements for you. They can confuse you with their jargon and convince you that everything is affordable. This marketing strategy often attracts customers who don’t realise that they might experience mortgage stress in the future.
If you are determined to have a car, you should avoid using your credit cards and start paying in cash. If you keep on using it, you are going to be in trouble. Why is that? Bear in mind that you are still going to pay for it. If your credit card bill starts to pile up and you have a mortgage and a car loan then most likely your budget becomes limited. You should practice how to stretch your budget and not make any unnecessary expenses. Mortgage stress can intensify your headache, especially when you think about how you are going to manage your mortgage expenses without considering another loan application just to cover the unpaid mortgage.
You can avoid experiencing mortgage stress by choosing a house or car that fits your budget. Calculate your salary, your monthly expenses like bills, education, food, etc. From what is left you ask yourself if you can afford to pay for a house. If it’s not possible then you choose a cheaper house, it may not be as beautiful but the best part is, you do not feel stressed whenever you pay for it. Mortgage stress can be avoided by being practical. Don’t get blinded by offers that are too good to be true and always do your own research before signing any deal.