Everyone makes financial mistakes in life, and some errors can get us into trouble or even force us to declare bankruptcy. Whether we know someone who filed for bankruptcy or are going through it ourselves, the negative image of bankruptcy can be traumatizing. So, learning about bankruptcy is part of having a concrete financial plan and good financial habits. However, when we get ourselves head deep in this economic predicament, a lot is needed to recover fully. Read on for more insights on how to maneuver through bankruptcy.
Live within means
Bankruptcy occurs when we fail to repay our debts and to live within our means. The ability to live within our means is the epitome of being debt-free, which is the key to overcoming bankruptcy. We need to reduce debt and increase wealth by streamlining expenses, keeping an emergency fund, investing for retirement, and cutting costs with simple solutions. A focus on living within one’s means can help a person eliminate unneeded or excessive expenses and achieve a better living standard. You can also relocate to a place with low living costs to ensure that your expenses stay minimal. To find such places, you can contact a real estate agent or look for websites such as https://buyahomeinsimivalley.com/simi-valley-cost-of-living, where you can get all the details about the cost of living in places like Simi Valley and more.
Servicing debts the right way
It’s estimated that the average American household is over $8,000 in credit card debt. That’s nearly 10% of the median household income. We live in a consumer society that depends on credit to meet our needs. However, when things get out of hand, we need a fresh start, and debt relief may be the answer. The first step is to reorganize any debts and learn to pay creditors on time. A bankruptcy lawyer may arrange a repayment plan with credit card companies or other creditors, but cheaper alternatives are possible.
Consolidate debts before filing for bankruptcy
Consolidating debts with the help of a debt consolidation company can potentially save us thousands of dollars in interest and finance charges. Through debt arbitration, we can pay off our debts for less than the amount owed and improve our credit rating. An attorney’s guidance is vital in obtaining and managing debt relief in the most effective manner possible.
Negotiate with creditors
Creditors can’t tear us down. It does not matter if someone filed a bankruptcy petition or can only pay a few creditors’ debts. We can renegotiate the debts with creditors. It is a way to emphasize our good faith and try to solve the problems step by step. If that involves working with a credit counselor, so be it! We can negotiate with creditors on our own to agree upon a monthly repayment schedule we can afford.
Hire a reputable lawyer
My experience was that a good lawyer helped me to work through my bankruptcy with less stress and more answers than I ever got from the credit card companies. My lawyer explained all the processes, so I knew what to expect. Searching for the right PA bankruptcy attorney, or hiring one wherever you might be, can really make a difference to how you are feeling about your issues. When I had questions, he didn’t make me take time out of my day to read through endless pages of legal code. He answered them in plain English. The bottom line is hiring a good lawyer, getting expert step-by-step guidance, and charting a path to financial freedom.
Always look for ways to make more money
There are many ways to make more money. For example, a person can find a job that pays more than the previous one by searching in different places, becomes self-employed, or starts a side business. I can even sell my old items to second-hand markets or garage sales. The possibilities are endless.
If someone likes making videos, they can also make money by vlogging. All they might need is to post quality content on a regular basis on Instagram, Facebook, or Tiktok. Once their social media channels have a huge follower base, different brands would start contacting them for collaborations and they can set their rates for each product they market. The good thing is that anyone these days can grow tiktok following or any of their social media channel’s following by delivering quality content. Moreover, one can also choose to vlog part-time along with their job or main business as a side income.
Certainly, bankruptcy has happened to thousands of people before us, and it can happen to anyone. But it isn’t the end of the world; the mentioned ways can help us bounce back and live a financially stable life.
