Are you in debt and feel that you have no other option but to file for bankruptcy? Many people struggling with debt often consider bankruptcy as a way to escape the bills that keep pilling up. However, there are other things besides bankruptcy you can do to kill your debt. Read on to find out how:
Set up a plan
Bankruptcy will only fix a symptom of your problem. And without fixing the problem at its core, it’ll come back again in a year or two and you’ll be back where you started. It’s a debt cycle that will never end unless you have a plan in place. Fixing the problem with your debt starts with making a good plan and following it as closely as possible.
Know your finances
To set up a plan, you’ll have to know how much you make and exactly how you are spending that money each month. Once you see where your money is going, you’ll be able to make the necessary changes to get rid of outstanding debt that is hurting you financially. Keep track of everything you spend your money on for one month, even if it’s as petty as buying coffee at the gas station. Once you do this, you’ll be able to see where you’re spending and where you could potentially be saving.
Once you know where your money goes, you can now trim any expenses you have to get your debt under control. You might be spending too much on eating out or buying things you don’t need.
Add extra income
Besides your paycheck, see if you can make extra money by working overtime at your work, selling things you don’t use or need anymore online or possibly taking easy part-time work. Any little bit will help!
Commit to paying off debt
Once you have a plan in place, you can see where you can give extra to pay off your debt faster. Start loans that have high interest rates and then work down the list. Also consider putting some money away into savings for emergencies.