- 22
- Mar
Unfortunately, more Americans than ever are facing the prospect of declaring bankruptcy thanks to the mortgage crisis or due to losing their jobs because of the overall economic downturn. If at all possible, you should do everything you can to avoid bankruptcy. Sometimes, people feel so trapped by their circumstances that they just throw up their hands in defeat and feel as if declaring bankruptcy is the only way out of their financial mess. Here are some ideas on how to avoid it.
– Cut out all unnecessary expenses immediately. Discretionary spending eats a hole into your wallet! In other words, you may be spending a whole lot more than you think on things that don’t even matter.
Consider making coffee at home instead of buying that expensive coffee house latte each and every morning. How about getting back into the habit of bringing a brown bag lunch to work? That move alone could save you $200 each and every month. Eat out once a week only! It costs at least half as much to eat at home as it does to dine at a restaurant. If you have children, that number really adds up quickly. Use the money saved to pay off your creditors.
– Stop paying only the minimum on your credit card bills! Owing too much will wreak havoc on your credit rating even if you’re making all of your payments on time. If one of your credit cards has a particularly high interest rate, pay that one off first: the interest you are paying is draining your precious resources.
– Take on a second part-time job, if necessary. It needn’t be this way for the rest of your working life, but it could be a really great temporary measure to help you pay off your extra debts and avoid bankruptcy. You’re not too proud: just go ahead and take control of your debt once and for all.
– Change your spending habits, period. It may seem overly simplistic, but it’s absolutely true: only spend what you have. Stop using credit cards, set a budget for yourself, and stick to it! Going “cold turkey” on everything you enjoy is never a good idea since it only invites bingeing later: but do set parameters for yourself. Go to the movies only once a month instead of more often. Look for deals when you shop and clip coupons. Make it a challenge to see how much money you can SAVE in a week.
– Of course, prevention is always the answer, but if you are so far gone financially that you absolutely can’t crawl out of the hole you’ve dug, make sure that you hire good legal representation. An attorney who specializes in handling bankruptcies will make sure you do it correctly with the least amount of damage possible.
Good luck!
If you are a Georgia resident looking for experienced and reputable Birmingham bankruptcy lawyers to help you, contact the offices of Dionne and Dionne (http://www.dionnelawyers.com/). Art Gib is a freelance writer.