No one likes to live in crisis mode, whether it is having to figure out how to get the kids to and from their after school activities when the car is in the shop or burning the midnight oil studying for a test or preparing for a presentation at work that has been put off, when you have more than you can handle you can feel like everything is too much to tackle. This concept is even more true when the things you have to deal with have to do with your money. Most of us are not fortunate enough to have family money, win the lottery, or make a large enough salary to cover our expenses and allow for luxuries. When funds are tight you can definitely feel stretched too thin, but that does not mean that you have to go into crisis mode with your money when you need certain things.
Some tips on how you can avoid a crisis with your money, regardless of your income level, include:
• Live within your means, and do not spend more than you make.
• Put some money aside each pay period for an emergency and only use those funds when a true emergency arises.
• Avoid using credit cards when possible, but if you do have to use a credit card only charge an amount you can pay off in full within one billing cycle. When you don’t pay off your credit card balances each month you end up paying more for everything you’ve used the card for because you have to pay the interest that accrues.
• Develop a budget that allows you to pay the bills and also gives you some flexibility to have some fun. If all you are able to do is work and pay the bills, you will be tempted to resort to credit cards or high rate loans to take a break.
If you are in over your head and think a financial crisis is right around the corner, take action now. You can take charge of your finances by calling lenders and asking for lower interest rates, and you can also eliminate debt by filing for bankruptcy. Depending on the chapter of case you file, bankruptcy can wipe out credit card and other unsecured debt entirely or reduce the amount of this type of debt significantly. When you have less to pay back, you can do more with your money and avoid a crisis that hits your finances hard.
For more information about how to manage debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.