No one really enjoys filing for bankruptcy, but in certain instances it may be necessary if you find you cannot pay for bills, finance charges, or interest rates that are piling up. Before you take the plunge in filing, make sure there are no other alternatives that can be put into motion to help you get a handle on your debt. Here are a few steps to take to try getting your finances in order before you take the step in deciding bankruptcy is the action needed.
Call All Creditors
Before you decide to throw in the towel and file for bankruptcy, make an effort to call each of your creditors to try to negotiate for better terms. You may be able to wrangle a deal on interest rates simply by making a phone call. It does not hurt to ask.
Pay Everything In Cash
To get ahead you need to stop using credit to pay for your bills. Freeze your cards in a bowl of ice inside your refrigerator freezer and leave them there to help cool down your ice cream rather than placing them in your wallet. Pay yourself first each paycheck by placing the money you need to survive (food and housing costs) in your wallet. When this money is gone, you will need to live without money until your next paycheck. Pay off what you can on the remainder of your bills according to the most important to the least important. If you need to make partial payments, this is more desired than skipping the payment altogether.
Keep A List
Forgetting to make payments on time can do some serious damage to your wallet. Keep a schedule of all of your bills including the dates the payments are due, the amount of the minimums, and the interest you will be paying. Seeing the amounts on paper will give you a better handle on what you are dealing with and will help you keep order to the deadlines. If you miss a payment date, call the creditor as soon as it is discovered and ask if they will waive the late fee. Most creditors will allow a one-time forgiveness for being late.
Ditch All Extras
It may be hard, but to get out of debt you cannot spend money you do not have. Stop the trips to get coffee and forego that new movie you hoped to see. Luxuries such as cable, cell phones, and internet service may need to be put on the back-burner as you try to get ahead of your debt situation. Remembering that this is temporary will help get you through the times you feel like whipping out a credit card and buying frivolities.
Pick Up More Work
If your regular job is not cutting it in making enough to pay your monthly expenses, consider picking up a part-time job to supplement the income. Freelancing jobs are also a desired way to help you get out of debt. If you can fix something, make something, or help someone, you may be able to make some extra cash on the side for your talents.
Consider hiring a debt consolidation service or credit counselor to help you wade your way out of the waters of debt. Having someone call creditors on your behalf to negotiate lower payments may be helpful in getting ahead. Having someone teach you where you are making mistakes with your spending may also be beneficial. For more information on bankruptcy, contact Gruber & Associates, PC or your local bankruptcy attorney.Share
29 July 2015
People with an eye for property can make a great deal of money buying a house, fixing it up and then selling it for a profit. However, there are many legal issues involved in this kind of pursuit. I am an attorney with experience in real estate, and I have helped many clients learn the legal details involved in flipping property. This blog will help you understand what you need to know when you are buying and selling a home as well as information about paying taxes on money made and property owned. Flipping houses can be a very profitable activity as long as you know how to do it legally.