9 Tips How You Can Avoid Bankruptcy

9 Tips How You Can Avoid Bankruptcy

A staggering 73% of all Americans pass away still in debt in today’s economy. For most living in debt is a way of life, but when the amount continues to pile up, bankruptcy isn’t too far from becoming a reality. Learning simple ways to avoid bankruptcy will make a major difference in a person’s life. Here are some lifestyle adjustments everyone can do to avoid bankruptcy San Diego financial consultants warn about:

Tip #1: Cut The Expenses

It might seem like the most obvious tip, but people in debt find it hard to cut down on their daily expenses. Cutting down on things like dining out and coffee to go will add up in savings as the weeks pass.

Tip #2: Charge What You Can Pay

The most common debt people carry as a burden is credit card debt. This is because they tend to overspend and only pay the minimum amount required. The interest rates quickly pile up making timely payments near impossible.

Tip #3: Sell Your Assets

Sometimes the best way to avoid bankruptcy San Diego residents fear the most is to sell your assets. Getting together enough cash to pay as much as possible will give you more time to pay off the remaining balance.

Tip #4: Try Negotiating With Creditors

Although it is not a guarantee, speaking to your creditors as soon as you realize you cannot make the promised payments may give you an advantage. Some creditors might decrease the current interest rate, offer you better terms, or reduce your fees.

Tip #5: Prioritize Payment

A very common mistake consumer make when paying off their debt is randomly paying them off. The best way to avoid bankruptcy is to organize the payments. First tackle the necessities, such as rent, transportation, utilities, etc. Next, create a payment system that prioritizes debt with the biggest interest rate to avoid costly fees.

Tip #6: Live On Basic Necessities

A change in your current lifestyle will make a big dent in your debt. Smart decisions such as moving to a smaller house, cutting back on the high-speed internet, and canceling spa memberships will make it easier to pay off loans while also saving money.

Tip #7: Seek Credit Counseling

There are experts who will gladly assist you if you are worried about bankruptcy. They will review your finances and guide you through debt management to ensure you can quickly recover from your financial crisis.

Tip #8: Find Another Source Of Income

Adding a different income stream will help you earn enough money sooner to pay off debt. It will be hard and require a lot of sacrifices, but the sooner you pay off creditors, the better.

Tip #9: Review Different Debt Settlement Options

Speak to a trained counselor and look into the possible debt settlement programs and choose one that works best for your specific situation and your capability of paying.

Facing bankruptcy is stressful and intimidating, but when you address your financial problems sooner with the help of professional counselors, you will reach your financial goals sooner than expected.
Sentry Servicing can help you avoid bankruptcy San Diego. Reduce your debt through our tried and tested programs that can help you avoid bankruptcy ultimately. Contact us today for more info.

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