These five tips to help avoid foreclosure may seem to some as very obvious. However, at times when people find themselves in a difficult situation they don't always see the simple steps first.

Before you even try to cut back on expenses, first find out where you are spending your money now. Keep a log, save receipts, review your checkbook, whatever it takes, but make sure you know where your money is going every month.

It's amazing how many of us don't know where the money goes! Then, categorize these expenses into Needs and Wants. Now, consider these five tips to help avoid foreclosure:

• Have a Savings Account. Even if you have to start small, be sure you are putting something away for a rainy day. There are some banks that are now offering debit cards (which access your checking account, so you're not adding to your debt) whereby when you use them they round up the purchase to the nearest dollar and put the difference in your savings account. This is an innovative concept. However you do it, find some way to pay yourself each month, even if you have to cut out some of those Wants.
• Call your Credit Card Companies to see if they'll accept lower monthly payments. Often they'll be willing to work something out with you to keep the payments coming in. This is a key area since there are some credit cards that have recently doubled their minimum payments. If you can't afford the new payments, it's much better to try to work something out with them than not paying them at all.
• Don't Be Late on or Miss your Mortgage Payment. This is CRITICAL. You must get in the mindset that your mortgage payment is your single most important payment every month! Many people who miss that first mortgage payment NEVER recover and they eventually wind up in foreclosure. Cut out the Wants, have a garage sale, send back the big screen, even get rid of the car with a payment in favor of a less expensive one you can pay cash for, whatever - but at all costs pay that mortgage payment first each month!
• Don't Deny that You have a Problem. Don't ignore the problem. And don't be embarrassed about it - you're NOT alone. Bad things do happen to good people. If you have a spouse, be sure to tell them what's going on. This is not the time to be the "Lone Ranger". You need everyone involved to work on improving the situation together.
• Don't Be Afraid to Ask for Help. There are resources out there that can help, if you will seek them out. Try everything before you give up and find yourself in foreclosure, even if it means borrowing money from Mom & Dad, other family, or friends.

You don't have to be a victim. Take action now and avoid the foreclosure from happening. Take the steps to reduce unnecessary expenses so that you are in a better monthly financial position. Educate yourself on the available options to avoid foreclosure and take action! If you seek legal advice, be sure to check the attorney out to make sure they're reputable. Take the above steps and don't give up - you can do it!