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Debt Consolidation
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STEPS TO TAKE BEFORE FILING FOR BANKRUPTCY
Are you in such a financial rut that you feel
bankruptcy is your only option for recovery? It's not
that simple. There are new laws that make it more
difficult for people to discharge their personal debts
through bankruptcy. These laws are a result of the
Government tightening its belt because of the amount of
people taking advantage of the bankruptcy system. Also,
bankruptcy will also severely damage your credit,
staying on your credit report for at least seven years.
Therefore, filing for bankruptcy may not be your best
option. Below are some tips that will help you get out
of debt and your finances in control without filing
bankruptcy. If you are considering filing for
bankruptcy,
speak to
a bankruptcy lawyer for free.
We also feature information on
how to deal with paying bills.
Determine what your situation is
It is very common for consumers to over-estimate
their problems. Therefore, go over all of your accounts,
write all of your debt down and who you owe it to. After
analyzing your problem on paper, you may realize your
finances are not in such bad shape. At the very least,
you will have a firm understanding of exactly how much
debt you have; allowing you to formulate a plan for debt
elimination. Develop a
budget for what you can
contribute towards your debt every month by tallying all
of your mandatory expenses, i.e.
car loan, mortgage,
groceries, etc.. The amount you have left over should be
used for paying down your debt. It is important that you
stick to this plan.
Pay with cash
Every month, you should set aside a certain amount of
your income in
cash. Consider this your disposable income, or
allowance. When this money is spent, you are finished
for the month. It will be hard for you to get accustomed
to this type of budgeting. However, you will likely find it
empowering to be able to change your spending habits so
that you can eliminate your debt faster.
Cutting monthly expenses is not easy, but is
essential. You can also learn
how to save at the grocery store.
Talk to your family
Discuss the situation with your family. Be honest
and let them know exactly what is going on. Let them
know that this type of problem can be fixed quicker by a
group. Make it a mission for the family to save and get
rid of the debt together. Turn it into a game for the
kids so that they enjoy it. Come up with a fun inexpensive
reward you can give yourselves if you are able to save
the intended monthly goal, or more than the prior month.
Teach your children about credit.
Get rid of stuff you don't use
Remember, one man's garbage is another man's
treasure. Get all of your old clothes, kids' toys,
gadgets, etc. and have a garage sale. Or you can sell
goods on eBay. Not only will you be able to generate some
extra money, you'll feel better by producing extra space
in your home.
Enroll in credit counseling
Star Loan Services has trained credit counselors
that can help you with your debt. First we will contact
all of your creditors and negotiate your debt to a
reduced rate with lowered or eliminated interest rates.
We will also help you set up a budget and put you on a
debt management plan. Our counselors are experts in debt
relief and will help guide you in the best direction.
Get a free quote today!
Get a second job
Even a few dollars/week/month will add up to significant
amount of extra cash for you to contribute towards your
debt. Several hundred dollars/month will really impact
the time it will take for you to eliminate your debt. Don't
worry about working at McDonald's or a car wash. This is
not permanent employment and you definitely do not have
to put these jobs on your resume.
In conclusion...
Do-It-Yourself Debt Relief
is not easy. However, helping yourself is a much option
that filing bankruptcy. This is a negative mark that
will haunt you for a long time (7 -10 years).
Related Reading:
-Life
After Bankruptcy
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