Many people want to know what they can do to avoid going bankrupt. It can be hard to answer this question, especially when you have to take into account each person's unique situation. This article will try to give you the ten best ways to keep from having to file for bankruptcy. This is just advice. It's not legal advice, and you shouldn't rely on it. Before making any decisions about your debt, you should talk to a qualified lawyer.
- Ideally, you should increase the amount of money you have each month. Getting a second job is the best and fastest way to do it. You can only get a second job if your full-time job will let you. Even if your part-time job only pays you $200 a week, that adds up to $800 a month, which will help you pay off a lot of your debt. Write down all of your debts, and put the ones with the highest interest rates at the top. These are the ones you should try to pay off first.
You need to stop using your credit cards because they are causing you trouble. If you can stand it, cut up the cards so they can't be used again. You could also give them to your wife if that doesn't work. You should keep a credit card on hand, though, in case of an emergency.
- Unfortunately, cars are not like houses; the value of almost all cars goes down. If your car still has value, would you think about selling it? You will need a car, so buy one that costs less. Just remember that what you pay for is what you get. It could be a big mistake to pay too little for something. See www.filingpersonalbankruptcyhelp.com/Bankruptcy Exemptions for more information. Exemptions from Bankruptcy.
- Look at all of your assets and figure out which ones are the most valuable. Most of the time, people don't know how much their things are worth. Because houses are hard to come by, their prices go up. This may help you pay off your debts. If you can't pay off all of your debts with a second mortgage, don't use this step. It's only worth it if you can pay off all of your debts.
This is by no means a complete guide to getting out of debt. Instead, it's just a few ideas for how to deal with your debt.
Take a close look at everything you own. You might be able to use the value of your home or another asset to pay off your other debts. Don't do this, though, if you can't keep up with your current mortgage and a second payment on the home. You don't want to lose it in the end. You might also be able to get money from the equity in your car. You could also trade in your car for one that has a lower monthly payment. Just make sure it works well so you don't have to pay for repairs all the time.
