How to Get Out of Debt Without Filing for Bankruptcy?
When you’re in debt and broke, the only thing that seems to be the only thing left to do is to file for bankruptcy. Although it can help you get out of debt when you’re broke, it will also affect your credit score. Even if you can get back on your feet, the bankruptcy would have ruined your credit standing and would keep coming back to haunt you.
Thankfully, there are ways on how you can get out of debt without having to file for bankruptcy even if you’re broke. Here’s how.
Talk to your creditors
One of the biggest mistakes people make when they are in debt is to dodge their creditors as much as they can for the simple reason that they don’t have the money to pay their debt. What many don’t realize is that many creditors are more than willing to make adjustments on your outstanding debt so that it can become more affordable, especially if you went through a major financial crisis like an emergency in the family or being laid off from work.
Check your credit card statement
Although looking at your credit card statement can be quite dreadful, taking a look at this will help you see that there are actually some charges like annual fees that you can request to be waived.
Also, it will also help you determine the minimum amount that you can pay in order not to incur any additional charges. Just make sure that you don’t be late on your payments. Otherwise, you can be charged with late fees.
Review your expenses last month
Take a close and careful look at every single thing that you’ve spent your money on the previous month, no matter how little this could be. It can help you see not only where your money is really going, but also which expenses you can cut back on so that you can use this to pay off your bills first.
Prioritize the essentials
When you’ve got a very tight budget to work on, focus on the bills that are the most essential. That includes your home, car, groceries, and utilities. These are usually the basic and important things you need not only to live on a day to day basis, but also contribute to a huge chunk of your expenses.
Don’t forget to save
Many people would say that it’s forgivable if you won’t be able to stash a few dollars while you’re trying to get out of debt. But here’s the thing. If you can’t start saving now when will you will be able to start? The amount doesn’t have to be a lot. $10 a month is a good start.
Track as you go
The best way on how to start becoming debt free is to keep an eye on your money as you spend it. The more you keep an eye on your money, the more you’ll become vigilant with your spending habits. There are a lot of budgeting apps that you can download for free to help you with that.
More in Loans & Mortgages
How To Protect Your Small Business From Predatory Lenders
You have just ventured into a new business, and you started searching for the best interest rates online. You come across...September 13, 2018
These Four Tips Will Make Your Already Great Career Even Better
Not everyone is lucky enough to say that they have a great career so far. Most people are either unhappy with...September 9, 2018
Top Seven Things Not to Buy Online
These days, consumers have the convenience of staying at home and surfing the Internet to scout for items to buy, both...September 2, 2018
Three of the Best Kinds of Loans For Small Business Owners!
Running a small business is a lot different from running a big company. First off, small businesses cannot start with a...August 24, 2018
Afraid of A Burnout? Here Are Five Rules To Help Entrepreneurs Keep Moving Forward
Being an entrepreneur can be tough. It is commendable that you have come this far and have chosen the difficult thing...August 22, 2018
Living Beyond Your Means: Six Telltale Signs
Many finance gurus advise against living beyond your means as one of the surefire paths to wealth-building failure. Basically, living beyond...August 20, 2018
Automotive Industry Embroiled in US-China Trade War
Shanghai customs agents have disallowed the releasing of a shipment of American-made Mercedes-Benz SUVs. They claim that they represent a safety...August 16, 2018
How to ‘Re-Program’ Your Brain to Be Patient
Just how patient are you? Each of us has a different tolerance level when it comes to getting what we want....August 15, 2018
Tech Giant Google Courts Major Partners Like Mobvoi Inc For Possible Integration In China
China may have blocked Google’s search engine operations in the country, but inside the heart of Beijing lies an internet giant...August 15, 2018