Are There Alternatives To Bankruptcy?
When you’re in a financial bind, bankruptcy is not the only way out.
However, there are a number of options to consider before filing for bankruptcy.
Bankruptcy is a difficult decision to make, so it is best to do some research and find out if there are other solutions out there for you, that could save you all the hassle associated with bankruptcy.
One of the first things you should do is to begin by calling your creditors. Credits will often have a system in place to help people that find themselves in difficult financial situations.
You should let them know you are considering bankruptcy as an option.
In many cases, creditors are willing to work out a different payment plan with you.
Don’t feel you need to hide information from them either.
Always be upfront and honest about your financial situation and commitments.
Before filing bankruptcy, take a good, long hard look at your finances.
If you do not have a current working budget, then you should begin making one immediately.
Start with your monthly income and deduct your monthly household expenses.
Understand how you are spending your money and find out where you can make cutbacks.
Many people save money by buying groceries in bulk, making changes to phone service providers or in household expenses.
Each and every little thing helps, when it comes to finances.
Credit Cards are another culprit to consider for the necessary changes needed. You may be able to take the balance from one with a higher interest to a lower interest level.
Then you will need to get rid of those high interest credit cards all together.
Avoid the temptation to pay off a credit card with another credit card, as this will only add to the interest rate fees you have to pay. Another option to consider would be refinancing your home or you automobile.
Or perhaps you have some family members or friends who are willing to pitch in to help pay off high rate debts and avoid bankruptcy.
If your family member is kind enough to help in this way, make sure your priority is to pay off debt and pay back the loan, even if you have to do it in small payments and over a period of time.
