Bankruptcy is a word that scares most people and gives them nightmares. Why wouldn’t it? If somebody told you, your money is running out and you won’t be able to pay your debts, how would you feel? Scared? Well, being afraid is just one of the emotions that will plague you. Personal bankruptcy and having financial difficulties are synonymous in the sense that both eventually leave you broke. Therefore, it is best to find a way out of the situation, before matters go out of hands. If you have decided to file a bankruptcy and you are situated in the state of Florida, visit the Orlando Bankruptcy Attorney to get a professional opinion. Additionally, I have compiled a list of 4 important steps for you to take before the worse happens.
Valuate Your Assets
As soon as you feel financial constraints, think about the assets you have bought in recent times. Trouble starts when we buy too many things on credit suppressing the fact that we have to eventually pay off all the borrowed money. Look around; is your house rent taking away a chunk of your income or is it a car you bought on the lease. At times, it is best to assess what amount of money you owe and why? Once you determine this, contemplate if you are able to delay an expense or repayment of a debt for the time being until you get a strong foothold. Another way is to check for unused stuff like books or CDs lying around your house. Sell whatever can be sold to conjure up a decent amount.
Forget Credit Cards
Credit cards are like quicksand; once you get caught in a credit card debt it is immensely difficult to flee. Unless you have control over your expenses, keeping a credit card is not advisable. Even if you have kept one for emergencies, it is best you cut them off and forget you even had one. The definition of the emergency may change for yourself once you have a credit card; suddenly fulfilling your urges will count as an emergency and you will keep on consoling yourself that you will easily pay it later.
Supplement Your Income
A simple rule of thumb when it comes to flailing finances is to find ways to supplement your income. The job you are doing is obviously not paying enough to support your expenses, so you need a part-time job that can help you raise $400 – $500 a month, nothing too fancy. Getting a part-time job depends upon your skills. Every human is good at something. Find that something! You could be great at painting, or mechanical repairs; search for your niche, earn some green bucks, and in no time, you will see yourself sailing above your crushing debt.
Make a Budget
Perhaps, the simplest action you can do to avoid personal bankruptcy is to take a pencil and paper and write down all your expenses, incomes, debts and credits. Having a visual representation of your situation can help you tackle it easier. Write down everything! Even the cost of a pen you bought. This might seem tedious and you can forget but since everyone has a smartphone nowadays, jotting down a minor expense can be a breeze. You can even use a financial software like Microsoft Excel to make your work easier.
This is as simple as you can get when it comes to avoiding personal bankruptcy. In extreme cases, you can summon your friends and family to come to your aid, however, remember you might have to pay them back too sometime later.