After the start of a new year, we are all bombarded by ideas for how we can do better in 2019. Diet changes, exercise, less time on social media. While these are all admirable goals, some people should focus on something much more important, which is making resolutions to help them avoid filing for bankruptcy.
Ideas to Help You Avoid Filing for Bankruptcy
While these ideas are geared toward avoiding bankruptcy, they are also things that will help anyone who needs to better budget their money, save more, or get their finances in order.
Cut Spending
Figure out how much money you spend each month. The results will likely be surprising, but it will help you put together a budget to get a handle on your spending habits. Once you know what they are, think about where you can cut back and hopefully earn some money back. This means big stuff, such as:
- Can you sell your current home and move to a less expensive one?
- Can you sell your car, and purchase a less expensive one?
- Do you have large items, such as a boat, motorcycle, or recreational vehicle you could sell?
- Can you forego a big vacation this year?
It should go without saying, but any money you earn from these cutbacks should go directly toward paying down your debt. Making some real sacrifices on this big stuff can make a significant difference, but so can cutting back on the small stuff. Try to eliminate all spending beyond the absolute basics of food, clothing, shelter, and transportation. That includes all the little luxuries most of us now consider necessities, such as:
- Cable/satellite/online streaming services
- Mobile data plans
- Dining out
- High-speed internet
- Alcohol
- Cigarettes
- Gym memberships
Maximize Income
Once you’ve minimized your expenses, it may still not be enough to pay off all your debt and completely eliminate the threat of bankruptcy. In this case, you need to maximize your income. Hopefully you already have a job, but if you don’t, now is the time to get one. If you do already have a job, take a second job. The same applies to your spouse or significant other if you have one. Any extra income you have should go directly toward paying off your debt.
Make a Permanent Change
Unfortunately, there is such a thing as a “serial bankruptcy filer.” These people use recovery from bankruptcy as an excuse to spend beyond their means again. Make the decision that you will not follow this example. Once you have gotten your feet back on solid ground, make a resolution to never let yourself get back to that place again.
Discover Tom Bible Law in Chattanooga, TN
If you are struggling with excessive debt and looking for a sound solution, the attorneys at Tom Bible Law, can help you explore your legal options. We have helped numerous clients from Chattanooga and throughout Tennessee and North Georgia achieve their debt relief goals by guiding them through the bankruptcy process. We work with every client personally, giving each and every bankruptcy case the time and attention it needs. We understand the financial pressures our clients are facing and work to resolve their debt problems in a favorable, cost-effective manner. Our bankruptcy lawyers have more than 50 years combined experience and are here to help. Call us today at (423) 690-7712 or drop us a note here.