Are you looking at how to avoid bankruptcy? If you are struggling with your debt and feel as though you are slipping closer to declaring bankruptcy, it is useful to know that there are several ways to heave your finances back on track and avoid losing your home and assets as an effect of bankruptcy. The good news, you’ll be surprised at how simple some of these how to avoid bankruptcy tips are:
1:Work out your outgoings – Many people titter on the edge of a big financial problem due to lack of knowledge about their own personal finances. Make a list of your essentials outgoings every months, making sure that you include all of your debt and essential payments such as mortgage or rent.
Then you need to consider additional daily expenses which are unavoidable such as transport and food costs.
2: Reduce your outgoings – Now you know the amount that is leaving your bank account each month, it is time to reduce this to as small a sum as possible.
Keep a money diary and ask your family members to join in by keeping a note of everything that they spend. You will soon spot key areas where you can reduce your outgoings, and this small change in lifestyle could be enough to make essentials expenses more affordable for you and allow you to avoid bankruptcy.
In order to successfully avoid bankruptcy you may need to make bigger lifestyle changes such as ditching the expensive hobby or extra-curricular activity. This may be hard to do on the face of it but remember you are doing this for a good cause; allowing you to avoid bankruptcy whilst keeping control of your finances and your assets.
3: Maximise your income – Now you have got your outgoings down to a minimum, it is time to maximise your income. Consider taking on an extra job and use these funds to pay off your debts as quickly as possible. Or sell your unwanted or unneeded items online or take a trip to the local car boots sale.
See if you are getting all the benefits you are entitled to. You may be surprised to discover that you are entitled to more than you thought and this all goes towards learning how to avoid bankruptcy.
Use any additional income to pay off your debt and you should soon see your balances go down.
4: Get bankruptcy advice – Don’t bury your head in the sand and hope that your personal finance problems will go away, they won’t. Even if you think that bankruptcy is the only solution for you it is important that you get professional debt advice as you may find that bankruptcy is not the only option for you.