As people are carrying more debt than they can handle, you see the rise in the bankruptcy filing in the hope to eliminate these debts. Rich people whose net worth are in the 7+ digits range probably do not worry about money like you and I. Even rich people are sometimes subjected to bankruptcy to protect their remaining wealth intact. This problem of bad financial management which ultimately leads to bankruptcy can be avoided if we follow some basic tips:
Tip #1 - create a cash flow analysis (also known as budget)
Many people frown at the idea of doing a budget because it takes too much time and effort. But if you do a sensible budget, you will never find yourself in any serious financial trouble. You should always have a budget that you can base all your spendings on. The budget is your best friend to help you determine exactly what you are spending on each and every month. You want to be able to track every single expense in your budget. Once you can do that, you should be able to review the budget and cut out any unnecessary expenses in the future. For example if you spend $0.50 a day on buying newspaper and you work 5 days a week for 52 weeks. That's a total spending of $130/year ($0.50 x 5 days x 52 weeks) on newspaper. Once you realized you are spending $130/year on newspaper, you can find a cheaper alternative by subscribing to the newspaper and not buy it off a newstand. Subscribing to a newspaper annually will generally cost about $50 a year. So just by using the budget, you found an expense that you can save you $80 a year ($130-$50).
Tip #2 - use only cash (this includes using your debit card)
By using only cash or debit card to purchase all your needs, you will never use any credit card or accumulate debt in the process. If you are only using cash or debit card for your purchases, you will never ever accumulate debt again. If you don't have that much debt over your head, there is a much better chance you will not have to declare bankruptcy.
Tip #3 - negotiate with your creditors
Creditors are in the business to make money, and they know how much you owe them. While the economy is suffering through its worst financial crisis in decades, many borrowers are faced with difficulties to repay their debt. Use this knowledge as an advantage and call your creditors. Negotiate with the creditors for a more favorable payment plan or reduced payment.
Tip #4 - eliminate unnecessities in life
Go through your budget and see what you can live without. Everyone tend to spend on certain things that they don't necessary need in their life. Why do you need to spend $5 a day on Starbucks coffee, when you can just as easily spend $2 a day on Dunkin Donuts coffee? If the purpose of the coffee is to keep yourself awake and alert, then Starbucks coffee is unnecessary in your life. Seriously go through the budget and reduce (if not eliminate) those unneccessary expenses.
If you are looking for additionals tips, dos and don'ts regarding the topic of bankruptcy, please visit [http://tofilebankruptcy.com].
Tip #1 - create a cash flow analysis (also known as budget)
Many people frown at the idea of doing a budget because it takes too much time and effort. But if you do a sensible budget, you will never find yourself in any serious financial trouble. You should always have a budget that you can base all your spendings on. The budget is your best friend to help you determine exactly what you are spending on each and every month. You want to be able to track every single expense in your budget. Once you can do that, you should be able to review the budget and cut out any unnecessary expenses in the future. For example if you spend $0.50 a day on buying newspaper and you work 5 days a week for 52 weeks. That's a total spending of $130/year ($0.50 x 5 days x 52 weeks) on newspaper. Once you realized you are spending $130/year on newspaper, you can find a cheaper alternative by subscribing to the newspaper and not buy it off a newstand. Subscribing to a newspaper annually will generally cost about $50 a year. So just by using the budget, you found an expense that you can save you $80 a year ($130-$50).
Tip #2 - use only cash (this includes using your debit card)
By using only cash or debit card to purchase all your needs, you will never use any credit card or accumulate debt in the process. If you are only using cash or debit card for your purchases, you will never ever accumulate debt again. If you don't have that much debt over your head, there is a much better chance you will not have to declare bankruptcy.
Tip #3 - negotiate with your creditors
Creditors are in the business to make money, and they know how much you owe them. While the economy is suffering through its worst financial crisis in decades, many borrowers are faced with difficulties to repay their debt. Use this knowledge as an advantage and call your creditors. Negotiate with the creditors for a more favorable payment plan or reduced payment.
Tip #4 - eliminate unnecessities in life
Go through your budget and see what you can live without. Everyone tend to spend on certain things that they don't necessary need in their life. Why do you need to spend $5 a day on Starbucks coffee, when you can just as easily spend $2 a day on Dunkin Donuts coffee? If the purpose of the coffee is to keep yourself awake and alert, then Starbucks coffee is unnecessary in your life. Seriously go through the budget and reduce (if not eliminate) those unneccessary expenses.
If you are looking for additionals tips, dos and don'ts regarding the topic of bankruptcy, please visit [http://tofilebankruptcy.com].
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