Trying to get out of debt can be like trying to get out of swimming pool intent of sucking you in for life. Just when you climb another step on that partially-submerged ladder, you feel like the weight of the world is hanging on you. There’s no reason to feel like that at all. You just need to make sure that you’re keeping a few things in mind in order to get the very best results possible.
First and foremost, let’s talk about bankruptcy. This is a scary topic for some people, but it doesn’t have to be that way. Bankruptcy is just a way for you to finally get your finances in order. It’s definitely something that’s going to have a negative affect on your short term credit options, but that doesn’t mean that it has to be the end of the world. You just need to make sure that you ultimately figure out what the best path for you to take really is. It might really be bankruptcy, but it also might just be something that you need to work your way through without going through bankruptcy.
It just depends on how much money you have versus what you debts are. If you only make 2500 a month and you have nearly 50,000 in debt, chances are good that it’s going to be very difficult for you to get out of debt unless you make some drastic changes. You have bills to pay that can’t be ignored — like rent, food, utilities, and other items that go along with living life.
So the more that you can plan, the easier life will honestly be for you. It’s just time to start thinking about what you ultimately want when it really boils down to it. Are you looking for a way to structure your debts and avoid the wage garnishment? Then filing bankruptcy does that.
If youíre being hounded by debt collectors all of the time, bankruptcy actually stops this immediately. You also cannot be taken to court for any debt that is included in bankruptcy. You may have creditors that will not like the fact that they can no longer get to you, but that’s okay. It’s better to be in a financial position where you can actually make a difference than one where youíre just going through the motions and you don’t know what to do.
The time that you spend during bankruptcy will be time for you to really learn the ins and outs of personal finance. You want to make sure that you never get to a point where you have to file for bankruptcy again. It can take a while to file, and it’s better to just avoid it as much as possible.
Don’t forget that you will still need to work on your credit as much as possible. It’s one thing to assume that you don’t have any other way to get things done, but you might be surprised at the credit offers you’ll get after bankruptcy. Since they know you are a new BK, they know that you cannot file again for at least 7 years. So they have a higher chance of actually getting their money.
Start out small and work your way up — good credit can be there for you if you do your best!