There are different ways to take care of your money, some of them are easier than others. You want credit, but you need to learn that credit cards aren’t free money. You need things to live, but you need to learn that there are many things that you don’t need and you’ll still live without them.
When spending gets out of control, and you are buying more than you can actually afford, you step closer to the possibility of needing to file for bankruptcy. When debt adds up, creditors start garnishing your wages, and you can’t see the light at the end of the tunnel, bankruptcy may be the only answer. Before you get to that point, follow these tips.
Start A Savings Account
The first step to avoiding bankruptcy is to make sure you have a substantial savings account set in place. At minimum a saving account should have 3 to 6 months worth of bill and life money put away, and that’s just to cover an emergency, like job loss. The more you have saved, the better.
Consider what you may use your savings for. Maybe you need a new car because of an accident, and have medicals bills to pay because of it as well. That may take a lot of money, so that means you want to be putting money into a savings account on a regular business.
Pay Off Credit Cards
Credit card debt gets many people in trouble on a regular basis. If you have credit card debt and aren’t trying to pay it off, that debt can make it so that you can’t get loans to buy a car or even a home. It can really hurt you.
Your bad credit score from debt, credit card or otherwise, can even keep you from being able to rent an apartment. Credit scores are used in banks even, simply to set up a checking or savings account.
Get Rid Of Your Debt
If you have debt, start taking care of it now. Find out how to get rid of your car if you have a car loan. In case you have a home loan, resolve it as soon as possible. It’s never too late to take care of your debt and get your credit score back up. Contact your creditors and set up payments. Make sure that your payments are covering more than just your interest or late fees!
Pay Your Bills On Time
You can keep from going into debt and have creditors calling you simply by paying all of your bills on time, and keep your credit cards and loans paid off. Debt isn’t the American dream, but many American are in debt when they don’t have to be.
Debt is the one thing that leads to bankruptcy. So, if you don’t want to have to be one of the people that files for bankruptcy, keep those bills paid!
