No one really ever sets out with the goal of having to file for bankruptcy, yet people have to do it every day. To help you avoid falling into the same situation I would like to share some ideas that can help you stay strong financially. The information I am going to share with you should not replace legal guidance but should serve as a learning tool only.
If you have high amounts of debt consider getting a second job. Many employers don’t have a problem with it as long as it doesn’t interfere with your work schedule or performance. They also don’t want you to be working for a direct competitor. The income from that second job should only be applied to lower your debt. If you earn $200 per week then you will have at least $800 more than before to apply towards your debts each month. Keep a list of your debts and apply the money to the one with the highest interest rate first.
While you are trying to eliminate the debt you have already incurred you need to not add more to it. Cut up all your credit cards or at least give them to a trusted individual who will not allow you to use them. You may keep only the card with the lowest interest rate. You need to be committed to only using it in a dire emergency.
Do you own your home? If so, you might want to consider using the equity you have built up in your home towards your debt. The amount may be more than sufficient. You need to make sure you will be able to meet the additional mortgage on your home though if you choose this option. If you have an expensive vehicle or a high payment on one, consider selling it. Buy something that is less expensive as well as gets good gas mileage. Be careful not to be one that will continually need repairs though.
Following these tips just may save you from getting too far down that lonesome road of debt without a way out. You want to change your spending habits early on so that you won’t find yourself in a position where bankruptcy is your only avenue for relief.
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