| Financial difficulties can occur in anyone's life. When | | | | "emergencies". It is possible that you truly only use your |
| you think financial difficulties are more than you can | | | | credit card for emergencies. But in a time of financial |
| handle, don't let bankruptcy become your first thought. | | | | difficulties, your view of what constitutes an |
| Bankruptcy should be considered as a last resort, not | | | | emergency could change. Without access to a credit |
| just the first thing that pops into your head when the | | | | card, the need to fix the air conditioner on your car |
| going gets tough. Instead, consider these options. | | | | doesn't seem so dire. |
| One of the first steps in avoiding bankruptcy is to | | | | Even though you need to cut up your credit cards and |
| make budget. If you have laid out a plan for your | | | | not use them anymore, you still need to find a way to |
| incoming money, you will be less likely to spend it on | | | | pay for them. Begin by moving all of your credit card |
| unnecessary items. You will therefore make the | | | | debt to the card with the lowest interest rate. If all of |
| money last longer and work harder for you. Setting up | | | | your credit cards carry a high interest rate, try |
| a budget is crucial to help regain control over your | | | | negotiating with the companies to see if they can |
| finances. If you already have a budget setup, review it | | | | lower your rate. Very frequently, credit card |
| ruthlessly and start cutting wherever and whatever | | | | companies are willing to work with you by lowering |
| you can so you can return to profitability. | | | | your interest rate and even allowing you to skip a |
| Another option to bankruptcy is to consider exactly | | | | payment, because they know that if you do end up |
| what your debt is. Perhaps you have purchased a | | | | declaring bankruptcy, it is very likely that they will only |
| home that is more than you can afford or maybe you | | | | see pennies on the dollar. |
| have too much vehicle debt. If either of these is true, | | | | Another option to avoid bankruptcy is to increase your |
| you may need to consider downsizing. If you are | | | | income. Although this may seem very obvious to |
| paying out more than 40% of your income on a house | | | | some, it is often overlooked. Cutting back on your |
| loan, it is definitely time to consider selling your house | | | | expenses may not be enough. Therefore, working |
| and buying a less expensive one. The same applies to | | | | overtime or getting a second job may be the only |
| vehicles -- maybe this is not the time to be making | | | | viable option. Try delivering pizzas, mowing lawns or |
| payments on a Lexus when payments or paying off a | | | | painting houses. If you are good with computers, there |
| late-model Toyota or Chevy makes more financial | | | | is frequentlyh a need in most areas for someone who |
| sense to keep more money in your pocket and your | | | | will fix computers or even do in-home teaching of |
| creditor's pockets each month. | | | | computer basics to novices. Any extra money you |
| Not only do you need to consider what type of debt | | | | can bring in each month can go straight towards your |
| you have, you also need to consider what items you | | | | current debt. |
| can sell to increase your savings. Often, selling items | | | | When drowning in debt, bankruptcy doesn't have to be |
| you no longer use can help with the month to month | | | | your only alternative. There are many viable options |
| struggles you might be experiencing. Maybe you have | | | | that should be looked into. So, before filing bankruptcy, |
| a lot of old books or CD's laying around that you no | | | | be sure to exhaust all other options. Remember, a |
| longer use. Selling off a few unwanted items can help | | | | bankruptcy filing stays on your credit report for 7 |
| free you from some financial burdens. | | | | years and is as visible as a sore thumb when you |
| We have all heard this time and time again. But, if you | | | | apply for new credit, even when things return to a |
| are having financial hardship, cut up your credit cards. | | | | positive cash flow situation, so you definitely want to |
| Under no circumstances should you use a credit card, | | | | only consider bankruptcy as a LAST resort when all |
| not even the one you have set aside for | | | | other options have not worked out. |