With the New Year just around the corner, many individuals are seeking ways in which they can improve their overall quality of life and eliminate the negativity—including their debt. At the Backus Law Group, our bankruptcy attorneys have seen the devastating toll that debt can have on an individual’s life; however, we also understand the serious repercussions that filing bankruptcy can have as well. From the inability to get a home loan to sky-high interest rates, bankruptcy is often just as difficult to overcome as debt. Because of this, we encourage individuals to evaluate all of their options before filing bankruptcy. One of those options to consider is budgeting.
Cut Unnecessary Spending
If you are on the brink of a serious financial hole, stop digging and start climbing. One of the best ways to do this is to cut spending. The first thing you need to do is to figure out how much you actually spend each month, and then determine how much you really need to spend each month. Put together a budget based on this second number.
Once you have a budget in mind, cut up all of your credit cards. If you cannot afford to pay for something in cash, you cannot afford it. Until you can get a grip on your spending, maintaining an all-cash existence is the best thing for you.
Maximize Your Income
Even after adhering to a strict budget for some time, you may find that you are still in over your head with debt or that you cannot afford to live a comfortable lifestyle on your current salary. Whatever the situation, getting a second or third job may be your only viable option. While working multiple jobs won’t be easy or fun, the extra income can help you get out of debt and find the financial footing you need to move forward with your life.
Take In A Roommate
If you have the extra space in your home to do so, take in a roommate. The additional help with the mortgage and expenses can allow you to save enough money to pay off your debt and avoid filing bankruptcy. If you’re lucky, sharing the expenses with someone else can even let you put aside a nest egg for the future.
Our bankruptcy lawyers at the Backus Law Group want to help you start the next phase of your life. If you want to get your finances in order without having to file bankruptcy, call (334) 265-0800, or visit us online to schedule an appointment with one of our bankruptcy lawyers today.