Need A Bankruptcy Attorney? Try Getting Out Of Debt First
There was a time when I was younger that I thought I was going to need a bankruptcy attorney to help me get out of debt. In fact, I actually sat down with a couple of different bankruptcy lawyers and weighted out my options.
Fortunately for me, I was able to find another solution outside of declaring a chapter 7 or chapter 13 bankruptcy, and here are a few tips that will hopefully steer you in the right direction as well.
1) If you are in debt currently, then you need to stop the bleeding. I will tell you that no matter how much unsecured credit card debt you have, you are not as bad off as someone else. What I am getting at here is there is always someone who had it worse than you and recovered, and so can you. The key is, however, to stop charging and running up debt now. Cut up the cards, throw them away and never look back!
2) Next, you need to set up a budget for your personal finances. When I say this I mean that you need to first ensure you have the income it will take to cover your weekly basic cost of living. These expenses include food, shelter and anything that supports those two functions such as electric, gas, water, trash service and maintenance or repair. I would also consider your car to be a basic asset and that includes maintenance as well.
3) Once you have your basic needs down and budgeted, you need to make a decision. The decision centers around reducing the cost of living listed in number two above. Can you cut back your cell phone, cable, internet speed and electricity usage? What about your car payment? There are always things that can be reduced and even eliminated if you look at them closely enough. This is the most important step thus far!
4) Now you will look at the minimum payments on all your debts and add those together. If you have enough to cover, great! If not, you will need to look at the lowest balances first and begin to pay them off. Once one debt is paid off, work on the next and the next. You will also need to call some of the debtors and let them know what you are doing. Many will work with you, especially in today’s economy.
5) The final step is to go out and get a second job. Any extra income goes right onto the debt.
The idea is to eliminate each debt one-at-a-time and then use the leftover funds to work on the next sized debt. By doing this, you are compounding your cash to take down the debts fast. Keep in mind, if this strategy does not work, then there will always be a bankruptcy attorney available to help you!