Being buried in debt will take a toll on you – emotionally and physically. How do you know when it's time to call a bankruptcy attorney and begin exploring the options that you may have? What can you do to improve your financial future once you've gotten everything back on track? Here, you'll find a few tips that can help you get through this difficult time and put yourself on a better track for the future.
How far behind are you?
Are any of your accounts in collections? Have you been using credit cards to make monthly payments on your other credit cards?
If you have multiple credit accounts that have been handed off to credit collections agencies, you're probably in pretty deep. The truth is that the further you are behind, the more likely you are to qualify for bankruptcy protection.
If you've been using one line of credit to pay for another, you're just getting yourself deeper in the hole. Of course, this doesn't mean that you should stop paying on things, but you really should limit paying bills with credit cards as an emergency option.
So, if you're very behind, facing collections and can't seem to pay the bills that you have with the income that you bring in, it's probably time to talk with a bankruptcy attorney.
How can you plan for a better future?
After bankruptcy, you'll have a pretty clean slate. You will likely have a difficult time gaining credit for a while, but if you can keep up with the bills that you do have, you'll begin to reestablish your credit, and eventually, things will get better.
To really make an effort toward a better financial future, work with a financial consultant. This person will help you to find ways to reduce your cost of living, teach you the best ways to save money, and advise you on how to rebuild the credit that has been destroyed.
Education is the key to financial success. No, this doesn't mean that you have to have a college degree or some great career – you just need to learn how to manage your money a little better and find ways to increase your income.
Begin putting all of your bills together. You will need all of the proof of debt and income when you meet with the bankruptcy attorney. Hopefully, you'll be able to find a solution to your money troubles and find a path to a better financial future.