You Can Avoid
Bankruptcy
When it seems hopeless many people think that they have no choice but to
declare bankruptcy. In some instances this is the case – but in others
there are things you can do to help yourself out. Bankruptcy should only
be looked at as a last resort when you are in debt, for it will stay on
your credit for seven to ten years and make getting any kind of house or
car almost impossible.
Not only that, but the laws passed in 2005 have made it even more
difficult to file, making it even more of a last resort. If you don’t
care about your credit than you might want to look at it, or if you fall
in that special category of people who really don’t have a choice then
by all means declare.
But if you know that you are going to want to purchase a home within the
next two or three years, or get a car, then you are going to want to
look at a debt consolidation or something of that ilk first. First you
need to total your debts and see how much you actually owe. Then figure
out which ones are good debts – like a mortgage or a student loan, and
which ones are bad – like credit cards.
Now figure out what you spend – everything – including that coffee that
you get every morning from Starbucks – and see how much you really have
to spend on your bills. It could be as simple as reducing a few things
here and there, getting a debt consolidation to make your payments less,
and then paying everything off. You won’t know until you take a clear
look at what you owe and what you make.
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