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.