How to Get Your Adult Kid Out of the House

Better

Audra Lowe: Whether it’s the melting snow or the economic times more people are
going to be finding their homes under water this spring but Tim Wilkins
with Freedom Debt dropped by with some ways that can actually help you
bail out.

Alright Tim, what’s the latest on the housing market, good, bad news?

Tim Wilkins: I wish I really do wish I came here with great news every time and
unfortunately for many people the housing market is not going to get any
better by mid June of this year one and 10 homes is going to be worth less
than what they owe on it forcing 3 million people into foreclosure by one
circumstance or another.

Audra: But aren’t the rates still low, I mean that’s where a lot of people don’t
understand what’s going on here?

Tim: They are still low but I can almost guarantee you they’re going to go up as
well, many of the interest only loans or low payment loans are about to
reset. They were the 3 year and 5 year loans and people that got in during
the height of the boom are going to see those resetting this year to a much
higher level and its going to be the difference between survival and failure
for finances for many people.

Audra: That makes it so much more difficult for a lot of people to just try to hold
on to their home too so what do you do? You’re trying to hold on to. This
is your dream. You’ve got your home what should you do if you find
yourself in a situation where you’ve got a lot of debt pouring on.

Tim: Well that’s where you really got a look at the difference between needs
and wants unsecured debts versus secure debt and of course your home as
a need. It’s not a wand. It’s a place you need to live. Maybe you wanted a
bigger home that we could afford but that’s neither here nor there now
when you’re looking at a place to hold your family and credit card debt if
you’re looking for that extra 3 to $500 a month that’s what many people
are throwing away on high interest credit cards just minimum of the
payment every month just to get by and that’s really, that’s a point where
if you can’t make more money the one place you can stop spending more
money or throwing it away is on these credit cards and many of the people
that are almost behind on their home mortgage are about to be behind their
cards or they’re already behind.

Audra: Okay so you’ve got some examples to, if people want to know real
examples of how you’ve been able to help other people out of debt.

Tim: Well again to show you a graph of what people are going through our
average client is carrying over $30,000 in just high interest credit card
debt and they’re making minimum monthly payments of $12,000 a month
with credit counseling it can still be as high as 950. On our program this
typically see a payment each month that was half of what they were
paying given their negotiated settlements and the negotiated settlement is
really where it comes into that reduction in their principle balance.

This individual owed over $41,000 it was negotiate down to just 18 and
this person owed over $42,000. It was negotiated down to $20,000.

Audra: So you’re talking about half or more that you have been able to reduce?

Tim: Typically, that’s what we see our clients see a reduction of half sometimes
more of what they owed and that makes it so much easier to get by and
that’s really. That’s what people need to know if they’re behind, if they’re
about to be behind. If they’re struggling they need to find help and that’s
where we come in. Pick up the phone, go to our website freedom debt.com
call the number on the screen and you’ll get a complimentary the first 50
callers and first 50 emails will get a complimentary and confidential debt
analysis and a copy of our budgeting guide to see if our program can help
them.

Audra: Actually it’s a good deal. Thank you so much Tim good to have you here.

Tim: Thank you.