The numerous bankruptcy cases that are filed across the nation each year serve as proof that economic hardship can affect anyone at any time. You never know when an unforeseen circumstance will arise, suddenly making it difficult for you to meet every financial obligation you have. Should you find yourself with more bills than you have funds to cover, you might be forced to figure out which ones to pay on time and what to let fall by the wayside. The key to surviving difficult economic times is knowing how to properly manage your debts with the money you do have available and understanding when it’s time to seek a solution. 

3 Strategies for Dealing With Debt When Funds Are Low

1. Pay for the Essentials First

It’s imperative to ensure you have enough money to keep your family fed and household running. This means your first concern should be to purchase groceries and essentials, such as toothpaste, toilet paper, body soap, and laundry detergent. Focus on buying the basics, cut out luxury items, look for coupons, cook every meal at home, and only replace household items once you run out of something.

2. Prioritize Your Bills 

Not all debts are created equal; therefore, it’s essential to prioritize the bills in order of importance if you aren’t able to make the due date on all of them. Typically, the first expenses that should be paid are the rent or mortgage and utilities to maintain a roof over your head with electricity, gas, and running water. Following that, it’s generally recommended to make payments in order of child support, unpaid income taxes, insurance premiums, student loans, car payments, phone bills, unsecured debt, internet service, and cable. 

3. Consider Filing Bankruptcy 

If you are falling further and further behind on your bills as the months go by and it doesn’t seem as if you will ever catch up, you might want to consider declaring bankruptcy. Many people make the mistake of waiting too long to seek debt relief—when it could have helped them avoid further financial burden. Think about consulting a bankruptcy attorney to learn how filing can stop creditor harassment, prevent garnished wages, and avoid foreclosure.   

Not having sufficient funds to pay for all of your expenses is a stressful experience to endure, but utilizing these tips will help relieve some of the pressure as you get your finances back on track. If you decide bankruptcy is an option worth exploring, the legal team at O’Connor, Mikita & Davidson can help determine whether or not it will benefit your particular financial situation. They offer over 20 years of experience guiding the residents of Cincinnati, OH, through the filing process and have made it possible for numerous clients to enjoy a debt-free life. Call (513) 793-5297 to discuss your financial struggles, or visit them online to learn more about bankruptcy.