No matter what circumstance might have brought bankruptcy to you as a topic of discussion or thought, here are some tips to help you avoid filing.
1. Organize your finances. Find all of your creditor statements and know who your creditors are. In addition, get your most recent pay stub or other income document to really calculate how much money is coming into your household each month.
2. Create a budget. Once you know your bills and exact income, you can take a look at your both to create a budget that makes sense to you. This will help you understand how much disposable income you really have and in reality what you can afford.
Find out what's happening in White Plainswith free, real-time updates from Patch.
3. Make sure you have a system to pay bills on time. Setting up reminders via email or your smart phone is a great way to make sure the bills are paid. If you feel comfortable with it, consider setting up automatic payments for a few bills to make sure they are paid on time. Sort your bills in order of importance. Your budgeting and organization from tip 1 and 2 will be most helpful in determining what expenses are discretionary and those that are absolutely necessary.
4. Get a copy of your credit report. Make a list of all your outstanding debts. Make sure all the account and amounts are accurate. Tally up all the debt to figure out your standing and approximate credit score.
Find out what's happening in White Plainswith free, real-time updates from Patch.
5. Map out your goals for the future. If you want to be debt free, figure out what you need to do to achieve that. Perhaps a second job or cutting expenses.
6. Be prepared for life changes in the short term and long term. Prepare for moves, change of jobs, children and other life fluctuations as best you can.
8. Financial honesty. Whether that’s with yourself or your significant other, you need to be on the same page about spending, saving and other money topics.
9. Purchase wisely. Do your shopping ahead of time to get the best deals. Don’t impulse buy it’s the quickest road to leaving yourself short financially.
10. Consult a professional if you find you can’t pay your bills. There is no shame in learning options and researching what you can do to help yourself avoid bankruptcy
Whatever you decide, understand filing bankruptcy is a big decision and one you may be able to avoid by making a few changes to your personal finances.
*If you need help making a decision give our office a call 914-301-3300 and we will help guide you on the path to financial freedom!
