You Can avoid Bankruptcy

You Can avoid Bankruptcy

Many families are struggling through their complex financial difficulties, as with unemployment at an all time high, it has become next to impossible for people to scrape up even the bare necessities at the end of each month. This is why declaring bankruptcy is something that holds a certain appeal and which home and business owners see as a way out.

Did you know going on this path will not only damage your credit rating but also affect your future opportunities and purchases? Prevention of a bad thing is often considered better than the cure itself, so below are some bankruptcy avoidance tips that will definitely help.

Consider Having All Due Dates Switched To One Date

Doing so will help especially if you have a lot of debt to deal with and have trouble keeping a track of which bill is to be paid next. Contact your credit card issuers and have the dates switched to one date that’s easier to remember, which will help significantly especially with preventing late fees and interest. You can even negotiate with creditors in regards to a low interest late and new repayment plan that would ensure that bills are being paid on time.

Having Trouble Paying Bills? Live Within Your Means

This is pretty obvious but one thing that people have the most trouble with. Living within the means of what you earn isn’t only the key to maintaining a healthy financial life but it makes sense as well even if following the tip can prove to be understandably difficult and a big change to make.  Take help from these tips on how to live within your means.

Make an Emergency Fund and Put Some Money without Fail

emergency fund

This tip is for when there’s still some time before you’ll have to declare bankruptcy. Create a separate deposit account and put in a fair amount of money every month, which should leave you about 4-6 months of take home salary/emergency fund.  This fund will hold you over until the emergency i.e. a job loss is replaced with another one. The savings should last a good while even after you’re unable to find a good job.

Have Trouble Budgeting and Monitoring Credit Expenditure? Switch To Cash Again

Ridding of all your credit cards is the only way that you can curb over spending and keep a track of the budget for every month. Plan an effective budget that allows a certain amount to be spent each week and even then spend only what is available in the wallet.

Sometimes, following even the best laid plans isn’t enough to get rid of the ever hanging sword of bankruptcy. At such times, professional help and guidance is needed that Empire One Credit will gladly provide when it comes to credit/debt management, bankruptcy counseling and debt consolidation assistance.