The amount of bankruptcy filings by individuals and businesses is on the rise. Thanks to federal aid, filings dropped during the pandemic. However, the trend is ticking upward once again. Here are some ways to keep yourself out of debt and away from bankruptcy court.
Tips to Avoid Debt
Limit Credit Card Use
Don’t buy something you can’t afford. If you can’t pay it off in cash, don’t resort to a credit card. Also, limit the number of credit cards you have.
Create an Emergency Fund
You should have at least 6-months of your salary set aside in an emergency fund to help cover unexpected expenses.
Focus on Needs, not Wants
Take a look at your spending habits. There are likely areas you can cut back in, like dining out or recreational online shopping. Buy only what you need and reduce spending on what you want.
Have a Budget
Plan out your monthly expenses. Set aside funds for your savings account, your 401(k), and necessities. Whatever is left can be used for your enjoyment.
Avoid “Buy Now, Pay Later” Plans
These deals let you pay off a purchase in smaller, fixed payments over a period of time. Using too many of them can lead to overspending and debt.
Pay Bills on Time
Calendar alerts and bill reminders will help you stay on top of when payments are due. You’ll avoid late fees and higher interest rate charges.
For two decades, Todd Cushner, Esq. has been practicing law in the area of bankruptcy. He has helped individuals lose the debt that has been impacting their families or business. The Law Office of Todd Cushner and Associates offers bankruptcy protection and foreclosure defense you can trust. Contact us for a free consultation.
