Should you file bankruptcy or consider other options to clear debts?
Problem:
My life is in a mess. I am immersed in debts. I am in a constant need for money. Sometimes, I take out a payday loan. At other times, I withdraw some money from my retirement account. I know that it is bad to deplete my retirement funds, but there is hardly any other choice. I am not able to pay off most of my debts. Should I file bankruptcy to get rid of my problems? Is there any other way out? I am just confused and frustrated. Please advice.
Solution:
There are lots of alternatives to bankruptcy. You can stop committing financial blunders such as resorting to payday loans. This is only increasing your debt problems and not permitting you to stabilize your financial life. It is true that bankruptcy or the best debt relief companies can solve your debt problems for the time being. However, keep in mind that the main cause of your financial problems will not be eradicated. This means that you may get into debt problems within this year. You won’t be able to resort to bankruptcy to solve your financial problems again.
You need a smart spending plan to solve your debt problems. You may get slightly dejected to know that you have to lead your life on a spending plan. In fact, a spending plan hardly sounds exciting to anyone. Nevertheless, just look at your present life. Are you feeling happy now? Probably not!
If you really want to lead a blissful financial life, then you’d have to change your lifestyle. Find out how you’re actually spending money. Keep an eye on where you’re spending money throughout the year. This will serve two purposes. First, it will let you know whether your expenses are surpassing your income. Secondly, you’ll come to know where you’re wasting your hard earned money.
Once you get a clear picture of your finances, you’ll get the drive to curb down your expenditures. For instance, you can encourage your family members to have dinners at home. You can watch movies at home. You’ll hardly miss anything if you don’t visit theater for a few months. You can start going to your office via public transport. It will help you save money on car expenses, gas and fuel. Buy groceries in bulk to take advantage of discounts. Use coupons while shopping. Other than that, think about the possible ways to raise your income. You can opt for the online jobs or sell items at various websites such as Ebay. You won’t have to leave your present job for doing the online jobs. You can do them after reaching your home. If you don’t get time during the weekdays, then devote the weekends to complete your online assignments.
Once you have created the spending plan, your next job will be to take care of your debts. You’ll have to devise a plan to repay your debts. The first debt that you’ve take care of is payday loans as they come with high interests. If your spending plan does not work, then you can think about working with the best debt relief companies in your state.
Finally, create an emergency fund to build a financial cushion for the future. Stop your habit of taking out payday loans. Never withdraw money from your retirement accounts. Once you have paid back your creditors, try to give a fresh start to your life.
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