If you are a homeowner struggling to pay your mortgage, you are not alone. Millions of Americans are struggling to pay their bills in todays economic downturn, and more and more people are losing their homes as a result. Foreclosure not only causes severe damage to ones credit score, it can be emotionally devastating as well. But there is a light at the end of the tunnel, and if you are at risk of losing your home to foreclosure, credit counseling can help.

Credit counseling as a way to prevent foreclosure may seem surprising or even unusual to many people, as credit counseling is most often associated with helping people who are struggling with unsecured debts such as credit cards. There are many ways, however, in which credit counseling can be very helpful in foreclosure prevention.

Debt is Manageable When You Have Help

The same principles that apply in helping people manage their credit card debt can also work for people who are struggling to pay their mortgage. As you begin the credit counseling process, your counselor will need to see documentation of your regular monthly household income as well as your regular monthly expenses. With this information, your counselor will be able to assess your financial situation and get to work in tailoring a budget specific to your current financial situation. Credit counselors are highly skilled at budget management and will help you determine what expenses you can reduce or eliminate altogether. For instance, if you go out to eat with your coworkers every day for lunch, your credit counselor will most likely suggest packing a lunch each day instead. And while making your grocery list, purchase only the necessities and buy generic whenever possible. For larger expenses such as monthly utility bills, your credit counselor may suggest tips such as cutting back on your cable and cell phone packages. You might also find that you can lower the cost of your car insurance payments by decreasing the coverage on your plan. Though the dollar amounts you are saving may seem small at first, successfully managing a budget can save you quite a bit of money, and every dollar you save can be applied toward paying your mortgage and saving your home.

Its a way of helping you prioritize your spending so that you can focus on what is most important first.

Depending on the circumstances, budget management is not always effective in helping people get a better hold on making their mortgage payments. In e cases like this, credit counselors can work with mortgage lenders and to help make a case for their clients in order to renegotiate monthly payments and the terms of the mortgage to help make it more manageable. And in the most extreme cases where it might simply not be possible for someone to keep their home in their current situation, credit counselors can provide information and guidance on alternatives to foreclosure such as selling the home as a short sale.

For more information on foreclosure prevention, budget management, and other consumer credit assistance, contact a non-profit credit counseling agency in your state.