In Part 1 of this blog entry, I pointed out that everywhere you look on the Internet, everyone’s concerned about how they’re going to make it through this credit situation of ours.

With that simple thought in mind, it’s always important to remember  that true failures in life occur only when people stop trying. As long as you’re alive, you have opportunity. If you managed to keep yourself going and/or your family together through these trying times, you have even more to start out with and keep you going. Some of the most successful people I know were baptized by fire.

Here are some more tips from my recent book, Foreclosure Self-Defense For Dummies, that speak directly rebuilding your life post-foreclosure:

1. Downsize to More Affordable Accommodations: Over the past 20 years or so, families have shrunk while houses have expanded. In the old days, a family of six managed just fine in a rinky-dink three-bedroom house. A second bathroom was considered a luxury. In modern homes, everyone has his or her own bedroom and each person shares a bathroom with, at the most, one other person. You don’t need much to live. Having a roof over your head, a place to sleep, a kitchen in which to cook meals, and a shared bathroom is sufficient for most families. It may feel a little cramped, but you can certainly get by until better days return.
2. Make a Lateral Move:  People often feel like failures when they’re not constantly ascending the ladder of success. You don’t need to constantly strive for promotions. If you’re good at what you do and you’ve simply lost your job, don’t worry about finding something better. Look for something that can bring in about the same amount of income or even less, if you’re able to make some lifestyle adjustments.
3. Pep Up Your Pocketbook:  You downsized, slashed your budget, and are holding down a fairly steady job, but you still can’t make ends meet. What do you do? Well, you have to find another source of income. You have to earn more. Here are some options:

• Pick up some overtime.
• Take on side jobs.
• Work shifts that offer premium or time bonuses.
• Moonlight by taking on a second job.
• Put other family members to work to cover some expenses.

4. Healing Your Bruised Credit:  Although cutting up all your credit cards and paying for everything with cash is certainly a possibility, you need to think about rebuilding your credit for the long haul — especially if you’re thinking about buying a house again someday. Take some positive steps to heal your bruised credit:

• Get into the habit of paying all your bills on time every time.
• Apply for a credit card if you don’t have one (use the new card to pay for necessities only, and then pay off the balance in full when you receive your monthly statement).
• Keep tabs on your credit report.
• Start saving a little every month and socking the money away in a savings account.

5. Get Back into the Game of Life:  When you suffer a series of minor setbacks or one big setback, you may feel as though life has just knocked the stuffing out of you. Perhaps you feel as though, no matter what you do, you can never get the break you need to make it. However bad you feel, you need to wake up every day, get out there, and do it. Otherwise, you’ll never get the big break you’ve been waiting for.

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