Controlling your finances is the key to achieving financial freedom. To do that effectively, you need to be free from debt. While filing for bankruptcy can shield you from some of your debts, your spending behavior can quickly disrupt your recovery process and send you spinning back into the rabbit hole of debt no sooner than the one-year bankruptcy period elapses. Many people’s lifestyle habits are the primary cause of the financially unhealthy imbalance between their earnings and unnecessary expenses. In the unfortunate event that you slide into unmanageable debt levels, please don’t fret; our bankruptcy lawyers are always ready to work with you to secure debt cushioning through filing for bankruptcy.
At Arizona Bankruptcy and Debt Solutions, we care for our client’s financial welfare. This is why our relationship with the client does not end with a bankruptcy verdict. We are concerned with their life after bankruptcy; we offer clients financial advice and other crucial steps to transform their financial life for the better. If you’re keen on regaining your credit rating after a bankruptcy, the first and most crucial step, of course, is not to go back to being bankrupt. But how does one avoid going bankrupt?
The first step in effectively slashing your expenses is by creating an account of all of them. Analyze and group them into fixed or variable expenses, one by one as you weigh on their level of necessity. Are they basic needs you can’t do without? Or ostentatious products? Also, please create an account of your income and compare it with the expenses. This newfound perspective will bring you to identify the unnecessary kind of goods and services ballooning your expenses and why you should avoid them. Being conscious of your income and expenses will help you create a budget within your financial limits, avoiding being pulled into the debt cesspit. Adjust your expenses in such a way that when you subtract them from your total income, you get a positive difference. You can consider having an emergency saving account to save a fraction of what remains after catering for expenses. It’s imperative that you adhere strictly to the budget for your financial freedom.
Once you’ve listed, categorized, and slashed your expenses, you might still find out that your income is insufficient to cater to them comfortably. If you can’t reduce expenses any further, say by moving into a smaller house, this is a signal to scale up your income. There are different approaches to this; you can look for a second job, scale up your business, change careers, apply for a promotion, and many more, depending on your situation and skills. You can also sell off some unnecessary stuff you bought before or co-share rent payment with a roommate.
If the situation is dire, you can consider applying for government food relief and medical care to avoid bankruptcy as you plan to recover.
Many people often come back from shopping with way too much than they intended to buy due to impulse buying. Having a shopping list may be a simple task, but it has proven very effective, particularly for people with impulsive buying. For instance, before going to a grocery store, always plan your meals and write down every ingredient you’ll need. Your shopping list can be simple or complicated depending on the things you plan on buying. You’ll have a more effortless shopping experience if you group your list of items into categories such as toiletries, dairy, groceries, etc. You can also check out the many software applications that help you create a shopping list and even counter-check prices across online stores.
Continually using your credit card to meet payments might be a contributing factor to your extreme expenses. Swiping your credit card with every expenditure may cause you to be unaware or vastly underestimate your spending. Going cash-only may be an excellent way to be conscious of your spending and limit it accordingly. It will also help you not surpass your limit compared with using a credit card since the money you can spend is limited to the amount you have in cash.
You can identify what scenarios or factors trigger your spending and mainly use cash under those circumstances. Using cash as you recover from your bankruptcy will help mitigate your excessive spending by helping you note where you spend most of your money.
Paying off your outstanding bills and debt on time will help give an excellent rating to your credit score. Make a payment schedule to remind you of due bills. You should note that credit card debt grows over time and the best way to keep it low is by servicing it regularly. You might also want to keep the interest rate low by consolidating your credit card debt. This means joining all your credit card debts into one to reduce interest rates.
Although our lives would be hell without a good supply of both electricity and water, you can save a lot of expenses by ensuring that you lower your bills by managing their consumption. Some of the most common ways to do this are; replacing incandescent bulbs (which use more energy) with LED bulbs, seal off energy leaking points, close taps when not in use, reduce your water heater temperature, etc.
Are you experiencing problems managing your debt levels? It may be time you consider promptly getting a bankruptcy attorney for guidance on how to cushion yourself and avoid inconveniences that may come with unmanageable debt by filing for bankruptcy. Our attorneys at Arizona Bankruptcy and Debt Solutions are there to untangle you from your messy web of debt entirely! Check us out at our website at https://azbankruptcysolutions.com/mesa/ today.
Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr Mesa AZ 85204
Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.