How to Avoid Financial Pitfalls After Filing for Bankruptcy
As a bankruptcy attorney, my job is to help you find relief from the financial stress that you've been going through. The process of helping people overcome their debt is what I do, and my objective is to help you find the financial freedom that you need, so that you can avoid filing future bankruptcies.
Here are a few steps that you can follow which will counteract the need for another bankruptcy filing:
Arrange a Budget...and Stick to it
Write down your monthly budget, and make sure that you are sticking to that budget. Writing down your budget, tracking your expenses, and reviewing the information on a regular basis is one of the most effective methods to pay attention to your spending habits.
It can be surprising to see how much money you are spending on a monthly basis, and tracking your expenses will give you the information that you make a change with your spending habits.
Don't Spend More Than you Earn
One sign that you are heading in the wrong direction is that you are unable to pay off your full credit card balance each month. Make it a goal to pay the balance off in full at the end of the month, and if you can't pay that balance; it means that it's time to stop spending! Spending more than you are earning is akin to being in the fast-lane back to bankruptcy...once again.
Utilize the Tools from Your Bank or Credit Union
In our digital world, it has become easier to manage your financial accounts online. Make sure that you have online access for all of your accounts, so that you can log in to view balances and payments that are due. Many of these online accounts allow you setup payment reminders, so that you never forget to make a payment again.
Also, use the features to setup automatic transactions that will cover the minimum payments that are due each month. Most minimum payments are as small as $20 or $30, and these small transactions can be scheduled to automatically draw from your checking account. The advantage of the automatic payment is that you will never have to pay a late fee again. You can always make additional payments if you have extra money to pay.
Have An Emergency Fund
Setup a savings account that is dedicated as emergency money, which will help you to avoid putting emergency costs on a credit card. Emergencies are unavoidable, and everyone will encounter unexpected costs at some point: medical bills, car repairs, broken appliances, job layoffs, etc.
The emergency will be less stressful if you know that you have money in the bank to pay for the emergency costs. Start out with a small amount in your emergency fund, and work to increase that amount over time. Don't touch that money unless it is an emergency! Your goal should be to save 3 to 4 months of income, which will help to cover costs if you lost your job or faced another big emergency.
Here at Newman Law, we offer debt relief and bankruptcy services in Huntersville, Charlotte surrounding cities. Are you ready to rid yourself from financial stress? Contact us today to schedule your complimentary consultation: (704) 584-9039 [Feel free to text]