Don’t Bank On Bankruptcy
Bankruptcy is a scary prospect but one that is very relevant in our economy today. While so many of us are working multiple jobs to just barely make ends meet and to provide for our growing families, the cost of living is rising and the value of the dollar seems to be in a downward spiral. The buck isn’t stretching as far as it used to before and with this in mind, many Americans are falling victim to their growing debt. It’s not hard to see how we fell into this predicament. We can blame many people for the state we’re currently in. from educators, to movie stars, to the media and the government, we can blame the world for showing us luxury, telling us we could get it and then charging us double for it all. Humans are like magpies sometimes and we flock to shiny things like moths to a flame but in our quest to elevate our standard of living, what have we sacrificed along the way? More importantly, what are we teaching our children? Bankruptcy is not a solution but in fact a last resort to one of two things: 1) an inability to properly mange income and the cost of living and 2) financial circumstances that were not prepared for, such as divorce or illness. Bankruptcy lawyers are a great resource and can walk you through the process of filing for bankruptcy but before you throw in the proverbial towel, maybe there are things you can do to protect yourself from getting to that point at all. Here are a couple tips that can help you shy away from banking on bankruptcy:
Put a halt on your spending:
If you’ve come to the point where you realize your expenditure is eclipsing the income you’re bringing home, quite simply put – stop spending. Don’t apply for more credit to pay off old debt and certainly do incur more debt by continuing to spend. Acclimatize yourself with a leaner way of financial management and get a hold of your spending. Make sure that you address the payment obligations that are crucial to your life, for example, things like food, rent, water and electricity. Shoes, new cars, new furniture and vacation are not in the cards for you if you are struggling to make ends meet and living pay check to pay check.
Switch providers where possible:
As far as spending is concerned, when you get to a point that you have make decisions like food vs rent, maybe it is time you cut corners in the expenditure department. A good way to start is by having a closer look at where you’re spending money the most – things like insurance, electricity and phone plans don’t have to go, but they can be strategically rearranged to better suit your other more pressing financial obligations. Do some investigation on better and more affordable phone plans that are flexible and more in-keeping with your spending abilities at this time. While it may mean you’re not able to let the kids chat all night with their friends on the phone, you’re saving the money you need to provide more important things.