If you’ve gotten yourself into a pickle financially, you may be looking for a way to buy time with equity so that you can have another chance to get your finances in order. Needing a second chance and buying time to get it might make you feel like a failure, but that’s not really the case. Here’s why.
First, know that things happen to everyone. Bills get away from people, emergencies come up causing financial hardship, and job loss or other interruption of income streams is an unfortunate part of life. Due to the widening gap between what people make and what they must spend to cover basic expenses, people are able to save less, leaving them closer to financial disaster.
You’re not alone in having financial difficulties, and it doesn’t make you a failure. Many people turn to equity for buying time.
Tapping Your Equity Is a Smart Move When You Need Time
If you have been under the impression that the need to buy time means that you’re a failure, here are just a few concrete reasons why that’s not the case, and why tapping your equity is a much better option than continuing to struggle.
It’s Your Money
Your home equity is yours. You’ve invested that money in your home and it only makes sense for you to use it if you need it. After all, you probably purchased your home, at least in part because it is an investment. You wouldn’t think of cashing in stock you’d purchased as a failure, and accessing your home equity isn’t either.
Paying Late Means Paying More
Financial hardship oftentimes means making late payments. When you make late payments, you’ll likely wind up paying even more. Late fees can cost you big time, especially for things like credit cards, car payments, and mortgage payments. Paying more likely puts you even further behind than you were before.
Paying late also means that your credit score is affected negatively. A lower credit score means that it’ll cost you even more to borrow money in the future if you need to, and the need to borrow money is even more potentially imminent when you’re having trouble paying for necessary expenses. Turning to equity for time and resources is a common way to get back on track with late payments.
Foreclosure and Other Defaults Hurt Longer
When you’re suffering from financial difficulties, you may eventually find yourself in default on loans. Defaulting on your mortgage can lead to foreclosure, and defaults and foreclosures will stay on your credit for up to 7 years. During those seven years, every potential creditor that pulls your credit report will see this stain.
Sell & Stay Is Ideal for Converting Home Equity
It’s better to draw on your home equity than to take time to allow your loans to go into default, even if it means selling your home with Sell & Stay. Here are a couple of reasons Sell & Stay is ideal to help buy you time:
- You can get to your equity without moving.
- It doesn’t stain your credit.
- You can buy back or sell your home at any point.
- It’s faster and more assured than actually selling.
If you are in need of time and money, turning to your home equity can be an ideal solution. Talk to a financial expert about all the options available to you. Contact EasyKnock if you think that Sell & Stay might be a good way to buy you time to get your financial house in order without leaving the house you love.