Many times avoiding bankruptcy is the best option. Are you having trouble paying your bills? Overloaded with debt? Getting collection calls? Before you decide on filing bankruptcy (an option that is always available), try putting yourself on a budget. A little careful planning and tough personal control can save you lots and lots of grief.
DO NOT GO TO A DEBT CONSOLIDATION COMPANY. THEY ARE EXPENSIVE & ACCOMPLISH NOTHING. YOU CAN DO THE SAME THING, DO IT BETTER & SAVE MONEY.
- The first step: DO NOT BORROW ANY MORE MONEY!! Sounds easy right? But, that also includes putting any more debt on your credit cards or getting signature loans. For some reason, people do not think adding to credit cards and signature loans is going deeper in debt.
- On a piece of paper, list your household monthly bills. Are there bills that you can do without? I’m talking about cable (Cox, etc.), monthly movie rentals (Netflix etc.), satellite (Direct TV etc.) service for your TV, extra high-speed internet? Now is the time to drop any services that are not necessary. They can always be reacquired later (or not) on when you can afford it. At the top of the page, put your average weekly or monthly pay (income) from all income sources.
- Subtract all of your monthly bills from that total. Now, you know how much you have to spend on your grocery list. Make a menu for a month or week or every two weeks, however, use that menu for your groceries & buy only items to follow the menu.
- Now, look at your list of creditors. Find your smallest amount owed. Pay as much as you can every month and still leave money (even $20.00) to put in your savings account each pay cycle.
- Examine your transportation at this point. Are you in upside down with a high-interest loan? Consider trading that expensive (high payment) car in on a base model with lower payments or selling it outright. I don’t suggest this route because if you are in too deep, you will have debt left on the loan and nothing with which to buy a used car for transportation.
- Don’t make a mistake of spending the money freed up by paying off debts. Every time you pay a debt off, use that money to double up on the next larger debt. Do the same thing on each succeeding debt. The farther you go the quicker the debts will be paid off.
Do not think that your debt will be paid off overnight. The debt was acquired over a period of time, but with conviction and determination, you & your credit rating will be the winner in this endeavor. One final suggestion: although it is important to check your credit score, refrain from doing it too often. No matter what is advertised on TV, checking too often, according to financial institutions, does in fact effect and can lower your score.
Help yourself by being informed with true information, not what someone tells you of what is on TV or the internet.
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