Getting into debt is pretty easy, and once you get out of debt it is important to stay out of debt if you want to have any form of financial freedom. But staying out of debt can also present significant obstacles, and most people fall in and out of varying degrees of debt throughout their lifetimes. Knowing what to look for and how to avoid pitfalls will help you remain debt free once you obtain that status, and following a few golden rules will also help your bottom line stay healthy.
Three ways to stay out of debt are:
- Stick to a budget: it is not enough to make a budget, you also have to stick to it and track your spending. Those that are successful with budgeting report that keeping track of the expenses in the budget is the best way to avoid overspending. There are many ways to track what you spend, and check it against your budget. You can download a free program, use a spreadsheet, or even do it the old fashioned way by writing down all of your purchases.
- Research large purchases: we all have times in life where a new car or house need to be bought, but before heading to the dealership or calling a realtor, do a little homework to research certain products. When you have a good idea what a car or home is valued at, you will be able to negotiate on price so you do not overpay for an item.
- Pay cash for things: avoiding using credit is one of the best ways to stay out of debt. If you have worked hard to pay off debt, wait a day or two before making a purchase with a credit card. Doing this often times results in avoiding the purchase all together because once people leave a store without buying, the chances of going back to spend money decrease.
Another way to get out of debt is to file bankruptcy. The key with this option is to abide by some or all of the above rules or others that work for you because once you file a bankruptcy case to eliminate debt; the last thing you may want is to diver right back in to taking on financial obligations you are unable to pay. But if you do, you should know that you can refile a case under certain circumstances to help with debt that arises after a case is over. There are specific rules on subsequent filings, and if you have filed before and need to file again, we can help.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com.