If you’re struggling with debt you can’t repay, bankruptcy law may provide some relief. Taking full advantage of this opportunity can allow you to reclaim your life and start over again. However, whether you’ve already declared bankruptcy or are worried about going into debt, it’s important to adjust your financial habits to avoid falling into debt while taking steps to build a better credit score. Below are five key tips for staying out of debt in the long term.

5 Tips for Staying Out of Debt

1. Make Shopping Lists

Controlling impulse buys is essential to controlling your spending, especially if you’re on a limited budget. Whether you’re going grocery shopping or buying home goods, decide what you need before you leave and write a list. Sticking to a shopping list will help you avoid overextending yourself financially and putting daily living expenses on a credit card.

2. Use a Budgeting App

Many developers offer free smartphone apps that link to your bank account and monitor your spending. At the end of the month, these powerful pieces of software will break down your purchases by category, giving you insight into where your money goes every week. You can also log your spending manually so that you’re extra conscious of each dollar you spend.

3. Pay Off Your Balances Every Month

Charging small amounts to your credit card or store charge accounts is an important part of building your credit, but these financial tools should always be used carefully. Make sure not to spend more than you can afford to pay off. Paying off your balance in full every month will help you avoid falling into debt and save money on interest payments and other fees.

4. Start Saving Money

Without a savings account, many people are forced to go into debt to handle an unexpected car repair or other financial emergency. Having a few hundred dollars set aside will give you the resources to overcome these obstacles without going back into debt.

5. Set Up Automatic Payments

Missing a credit card payment can trigger expensive late fees and higher interest rates, making it even harder to keep up with your obligations. Before you start worrying about bankruptcy laws, set all your credit card accounts to receive automatic payments. This ensures all of your bills are paid on time, which also helps build your credit rating.

If you’re experiencing issues with debt, the bankruptcy law attorneys at Steven P. Ciardiello, Esq., P.C. will identify your options and help you find the right debt relief solution for your situation. With their in-depth understanding of the bankruptcy law and years of experience serving struggling borrowers throughout Hamden, CT, their legal team can help put you back on the road to solvency. Visit their website for more on their services, or call (203) 248-8000 to arrange your initial consultation.