Thursday, May 7, 2020

When most people hear the word bankruptcy, they feel terrified as they think it's their only option and that nothing can get better from the point they're currently at. The truth is that's not your only option and sometimes it's just a matter of getting organized and reaching out to the right people to help. Bankruptcy is when you can no longer pay your debts. Maybe you have a large student loan, massive credit card debt, and a variety of other financial issues, and you are contemplating bankruptcy yourself. Today I'm going to explain some alternatives to going to the worst case scenario of filing for bankruptcy.

Why do people file bankruptcy instead of working with firms like Saxton Associates?

When someone files for bankruptcy it's usually because they can no longer pay off their debt and they are quite literally drowning in it. When people are in this position, they often feel there is no end in sight. Their financial situation can be holding them back not only from enjoying life but also from being able to pay necessary bills, provide proper care for the their family, or keep their business running. People often think of this as their only option when it a bad situation but there are actually other ways to go about managing your financial situation and buying you more time and peace of mind to figure out what to do.

Instead of filing for bankruptcy you can do several things to work on your finances.

Stop creditors from harassing you by researching the laws and learning your rights as the person that owes the money. There are certain lines that are crossed by creditors and you can learn about them and start flipping the switch to protect yourself. You can also figure out a way to negotiate with creditors whether it's giving you some more time to pay or setting up a payment plan for a final debt amount that you both settle on.

You can turn to a credit counseling agency to help you navigate your options and even negotiate with creditors if you don't feel comfortable doing it yourself.

In the meantime, it's imperative that you get yourself on a budget and stick to it. You need to find a way to minimize or eliminate as many monthly expenses as possible, even if that means making sacrifices. Your fun and dining out may need to turn into very cheap alternatives or even free activities or meals that you get at a neighbor's house or a family picnic.

A good expert in the financial field like Saxton Associates, can help you realize what got you into your current situation, the possible outcomes, and what you can do to stay out of yourself in the future.

What actions can you take in the future to avoid financial ruin?
Aside from budgeting, you can save money for the important things in life and as a backup for any emergencies, and you can stay out of debt by using credit cards in a more responsible way. Using a card on a purchase you already budget for and then paying it off in full the next month is a great way to use credit to keep your credit score healthy and no accrue any interest.
So if you feel overwhelmed with finances and knowing what to do for your future, speak to a professional before you rush to file bankruptcy.