- April 2014
- Posted By JohnnyG
- 0 Comments
If you are close to utilizing the services of a Maryland Chapter 11 & 13 attorney, then it might be time to understand some of the options you have for achieving financial freedom before you reach that point. Since Bankruptcy can stay on your credit for 7 years, you need to weigh your other options. Additionally, not changing your habits now could have you sitting in front of another attorney before you know it.
This begins with the first tip, which is sit down and find out where you really are. Often, we can fool ourselves into believing that our financial situation is better than it actually may be. Taking the time to list your debts and to better understand where you stand is going to be hard, but it will ultimately be worth it in the end.
From here, the next important tip is that you put an end to spending on wants. There are needs and wants in our lives and it is important to understand the difference between both. Spending money on medication, food, water and utilities are considered needs, because we need to have them to survive. Buying the latest album from your favorite artist, going to the movies and eating out are wants and not doing them won’t negatively impact your physical wellbeing.
That doesn’t mean you should go cold turkey by any means and that is where the next tip comes in. When you are too restrictive in your budget and your plan, you open yourself up to failure and you undo any good you have done. Instead, take a moment to figure out a way you can add in some, but maybe not all your wants. Perhaps have a coffee while you are shopping for groceries or go to the movies once a month with your friends. Keeping it minimal will help your budget, while you avoid ending up so miserable that you just give into spending again.
If you are close to the point of finding a Maryland Chapter 11 & 13 attorney, but are still working on building a savings account up, it might be time to reconsider your approach. The truth of the matter is that while savings accounts are great, you won’t have easy access to credit anymore. Additionally, the savings balance can help to pay off high interest credit cards and keep your credit clean so you end up with lower interest cards and loans that can help you in the middle of a crisis. Of course, another tip to consider is that paying off all your credit cards and close down all of them except for the one with the lowest interest and the oldest card can help you considerably.
In fact, you will find that credit card companies will often let you transfer balances from other cards. That will mean you end up having the ability to turn a high interest debt into one that can be quickly paid off. Just keep in mind that many of these transfers are subject to the balance being paid off by a certain date. Otherwise, interest can start back to day one and in some cases; it can be a considerable amount.
Keep these tips and advice in mind when you are looking to get back your financial security. While it will take time to work everything out, you will find that it will be very possible. You just need to remember to be dedicated and focused and if things don’t get better, then you will want to speak to a Maryland Chapter 11 & 13 attorney about the options that you have for bankruptcy.