During hard times, you may find yourself in a position where you may have to face possibly foreclosing on your home. Foreclosure prevention counselors advise that this has become a very common situation for many Americans these days and unfortunately, it has caused a new trend among scam-artists.

Beware of foreclosure rescue scams! There are many fraudulent organizations posing as legitimate foreclosure prevention organizations. They claim they can save your home and further claim they have successfully been helping clients for many years. In many cases, the homeowners who respond to these con artists usually end up losing their home, resulting in the con artist walking away and pocketing the equity.

Always use caution when searching for companies which claim to provide foreclosure assistance. Do not work with an agency who:

• Asks for an up-front fee before providing you with any services.
• Tells you to send a mortgage payment to them (you should never send payments to anyone other than your lender).
• Asks you to sign your house deed over to them.
• Is pushy or rushes you into filling out and signing loads of paperwork.
• Guarantees they can save your home before reviewing your situation.
• Cannot clearly explain the steps to be taken to save your home.

On the other hand, there are many agencies that can truly help you save your home. If you decide to go with a foreclosure prevention agency, housing counselors advise you to carefully research the company. Look for a reputable agency which does the following:

• Offers a free initial consultation to go over your unique situation.
• Takes the time to fully explain the process.
• Shows an honest success rate and does not claim to be 100% successful.
• Is registered with the Better Business Bureau and has a good record with them (click here to visit the Better Business Bureau).
Although it may be difficult to make sound decisions due to stress while facing a foreclosure, it is important to use extreme caution! Housing counselors advise that picking the right agency can make the difference between saving and losing your home.

When it comes to budgeting, credit counselors often advise to plan ahead.

There are many costs that are not necessarily considered monthly expenses that you may be forgetting to include in your monthly budget such as car maintenance (including city and plate license), car insurance, school clothes, school supplies, insurance premiums and taxes. These costs might only come up one to four times yearly. These may be large one-time expenses that may not be included in your balanced budget, which is why it is important to start saving now. To budget for such accounts, take the total estimated cost per year, divide it by 12 and set aside that amount monthly so you are ready or in a better financial position to pay them when they are due.

Then there are unexpected costs that may come up immediately such as car repairs, medical bills, and home repairs. These are more difficult to estimate, but equally important. In the event these saved funds are not needed, you can apply this to a high interest credit card.

If your budget allows, it is a good idea that you prepare for unexpected costs and loss of income. Credit counselors advise that you have three to six months of income set aside in an emergency fund.

If you have had trouble saving up for an emergency fund, you may want to consider putting away this year’s tax return. In addition, don’t forget about that extra stimulus refund you may be receiving later this year. It might be tempting to spend that extra money right away, but you may want to consider saving it. Credit counselors advise that the absence of an emergency fund can be a critical financial error and you will be thankful it is there if it is needed.

It is still possible to obtain a credit card, even with bad credit. If your are in this situation, you will most likely have to pay more and your card’s terms may be more inflexible than those of the average credit card owner. If you still owe bad debts, call a credit counselor and he/she should be able to give you the advice you need to begin building a better credit history.

It is hard enough to obtain credit if you have a bad credit history, and can be just as hard to get credit if you don’t have any credit history at all! If you are trying to establish a credit history for the first time or you have made mistakes in the past and are trying to rebuild your credit history, there is still hope!

Credit counselors advise that you first try applying for a credit card through a credit union, they usually offer the best rates for people with damaged or no credit. The best rates are obviously offered to those with high credit ratings. You will find that the further away from perfect your credit rating is, the worse your finance charges, fees and credit limit will be.

Be careful that you don’t obtain a higher credit limit than you can handle. This could cause your credit-building attempt to fail. If you can afford more, apply that money towards getting out of other types of debt. This will improve your debt-to-credit ratio, which should improve your credit score.

Don’t lose focus of your non-credit-card bills. There is almost no point in paying off your new credit card if you fail to pay your mortgage, car payment or utility bills. If you think you need help in developing a budget, call a credit counselor!

It is also important that you do not apply for every credit card you see. Every time you apply for credit, it can be seen by other creditors on your credit report. Take your time and do your research to find out where you will most likely be approved.

Keep in mind that you may not be able to get a credit card anywhere on your own. If this is the case, you may need to find a relative or friend willing to co-sign for the card but be aware that if you do not pay on time every month, you will damage the co-signer’s credit as well as your own.

You may want to consider opening a secured credit card as another option. This is done by putting your own money into a savings account, which acts as the credit line for your credit card. For instance, you put $1,000.00 into your secured account and your credit line could be as much as $1,000.00 (some secured accounts can have fees). Credit counselors advise you to visit www.bankrate.com for a listing of the best secured credit cards. This is reported just like an unsecured credit card and shows creditors your ability to handle credit. Eventually, your bank may extend your line of credit beyond what you have put in, which may help you reach a status to where you no longer need a secured credit card.