If you’ve built up debt that’s growing out of control and is threatening to eat into your retirement savings, it’s time to take strict measures to regain control of your finances and avoid bankruptcy. Being at the mercy of banks, debtors and money lenders can be emotionally draining and lead you to a state of despair. Often times, these situations cloud your ability to take corrective measures, and with no clear direction of the next steps, the situation is bound to spiral out of control.
We’re here to help you maneuver this situation and prevent you from falling into the deep end. So, if your financial assets and properties are at risk, worry not. Follow our 6 step guideline to get a control of the situation, cover your losses and gain your old life back:
- It’s Time to Get On A Budget
Budgeting is the first step to gaining control over your financial situation. If you feel that you’re losing track of your expenses, savings and spending money, with each financial bucket mixing into the other, it’s a serious sign of alarm. Often times, it starts with dipping into other financial buckets as one-off emergency activities, which you feel you have control over and can easily bring back on track. But, this habit is not good in the long run and can lead to irreversible financial losses. So, the moment you feel you’re losing control, the easiest way to start budgeting is by setting a fixed budget and writing it down, so that you’re committed to stick to it.
- Cut Out the Leaks in Your Pocket
You may be wondering how things got so out of control even though you’re earning well and get your salary on time. Well, it’s time to take a good hard look at your expenses, loans and credit card bills to identify where exactly the leak’s happening from. Is it an unplanned holiday or an emergency medical situation, or are you maxing out your credit cards such that 40% of your income goes into repayment. Cut these leaks immediately to gain control.
- Say Goodbye to the Extra Fluff at Home
Maybe all that cash has been spent on buying new items for your home, an extra beanbag or a juicer, a new high-tech music system; things that felt right to buy at that time. Look around your home to identify these unused gadgets, furniture, kitchen equipment that you can earn from. There are many online stores that are open to buying second-hand or will help you find the right customer and price for your product. While this step may seem a bit extreme, it’s the easiest good way to get back big chunks of money that you felt you didn’t have. This income will help you pull forward a little longer.
- Quit the Credit Card
While the credit card has been a boon to many, helping individuals plan their expenses such that they can spread out heavy costs, it can really turn out to be the villain if not managed properly. People tend to overlook the high interest rates and penalties tied to credit cards, swiping them for every small and large expense that comes their way. If you’re on the verge of bankruptcy, the first step to take is to stop using the credit card, even for emergencies, it’s the biggest money drainer that leads to bankruptcy.
- Find An Additional Source of Income
Texas has many avenues for making additional income. Do you have an unexplored skill that can make you some money? Maybe you could take up a short-term project or work after hours at a coffee shop to make some extra money. There’s no shame in doing whatever it takes to gain back your financial stability. Be rest assured, that this will be only a temporary state till you’re able to get back on track and make your money work for you. You can also figure out how to ask for a raise which can add up to your regular income.
- Consider Applying for Bankruptcy
If you feel completely at loss and don’t think you’re in a situation to apply any of the above suggestions, consider consulting a lawyer. You will be able to get a better understanding of your exact financial situation, your eligibility to apply for bankruptcy and the support you can expect from the government to take you out of this dire situation. Meet with the Finest Bankruptcy Attorneys In Fort Worth to get a fair analysis of your position.
While this can be a tough situation, it’s necessary to always maintain perspective, think one-step-at-a-time and be focused. Try to win one small activity at a time and slowly but surely you’ll be out of this sticky situation.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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