The weight that money holds in our lives is unfortunately large, seeing as everything we do depends on our ability to buy something. Whether it is buying a good or a service, we as humans are pretty much dependent on money and our ability to make and spend it. While there may be a choice between big spending a smart shopping, there are many people who often think they are being smart with their finances and then realize down the road that they are on their way to debt, and eventually have to file for bankruptcy.

Particularly when it comes to buying a home or any other form of property, often times people get sucked into what they think is a good deal only to learn later that they cannot actually afford to make the payments. These people, and many times families, are then responsible for a mortgage they cannot pay off and eventually their house is ceased by creditors or from the bank in a foreclosure, and they lose everything. This may sound extreme, and yet there are so many people today who have lost their homes during the hard times because they were not able to make their payments on their property. In some cases, it was caused by unforeseen circumstances such as losing your home or getting extremely ill and not being able to pay for the b ill's despite your good medical coverage.

On the other hand, there are families who do not understand the extent of the loan they are getting themselves into; and eventually become so excited to buy the property that they fail to read in between the lines of their contracts. According to studies by NeighborWorks, who evaluated 75,000 mortgages between the years of 2007 and 2009, loan borrowers who did not receive pre-loan counseling often fell behind in their mortgage payments of at least 90 days in their first two years at their new property. In contrast, the studies also showed that people who participated in pre-purchase counseling were one third less likely to fall behind on their mortgage payments.

While this study may have not been country wide, it does make a bold statement to both buyers and to lenders. NeighborWorks findings shows, that pre-purchase counseling is beneficial for all parties involved. If the buyer is prepared thoroughly ahead of time, they can be confident in their purchase knowing that they will be able to make their payments. There are many contradictions when it comes to the topic of loan counseling programs, wondering whether or not they are truly affective in the lives of the buyers, particularly.

Loan counseling can accomplish a lot, including preparing the buyers for what may lie ahead. However, many do claim that it is impossible to help a person through loan counseling if it is within their character to be led into debt, or defaulting on a loan. While loan counseling may not be able to help a person if their natural tendency is to spend far more than they have, it can help educate those who deeply care about smart spending. Programs such as these help potential buyers learn for themselves if they can afford the loan rather than just rely on a banker or a real estate agent to guide them. In some cases those individuals may be more concerned with making a sale than helping you make the best decision you can. Loan counseling programs are often nonprofit organization who actually seeks to do well in the community, for the benefit of the people rather than themselves.

In the event that you have defaulted on your loan and it has led you into debt, fear not. Contact a bankruptcy attorney in your area in order to take action against your debt and be protected from creditors!