In this tough economy we are all looking for ways to maximize every dollar. Paying your bills on time can save you hundreds of dollars in interest. At the Strong Law Firm we have helped many people in Northern Virginia file for bankruptcy and help them better manage their financial obligations. If you are having trouble paying your bills there are certain tips that can help you avoid bankruptcy process altogether. If you are considering filing bankruptcy feel free to give us a call as we can help you in the process.
- Organization is key. This may sound like a basic no-brainer but believe it or not a common characteristic of people who fall behind on their monthly payments fail to be organized. Understanding your bill statement and when your payments are due and help you prioritize and manage your financial income. If you’re disorganized it will become very easy for you to miss a payment and face late fees or other penalties.
- If you have cable call and ask for a better rate. Cable companies understand that the economy is tough and some providers may be willing to negotiate a better rate for services. Sometimes you may be able to upgrade your current services to a newer plan and say all monthly costs.
- When you shop ask yourself do I need this item? In the United States, we tend to distinguish needs versus wants. We all have a long wish list of things we want but they are not necessarily what we need to survive at the moment. Consider leaving your credit card at home when you go to the mall or on a weekend outing. This may help you break your spending habits and lower the amount of money you owe at the end of each month. Some people have saved hundreds of dollars by applying this technique.
- Consider transferring a balance to a no interest credit card. Introductory offers on credit cards offering excellent 0% initial periods of financing. If you are currently paying 16% interest on a credit card looking how much money you could save if you took off that monthly interest. For the best credit card offers and apply at home at your own convenience. Remember the goal is to pay off debt not to add additional debt. If a new credit card may be a struggle for you do not apply for one.
- Cancel credit cards once you pay them off. No one needs to have 15 credit card accounts. As you pay off your credit cards consider closing all accounts so that you are left with only one or two credit cards. Once you have lowered the amount of credit cards you have, consider calling the two remaining card companies and asking them to lower your credit limit. This will make sure you never incur balance beyond your ability to pay.
The above list offers some common sense ways for you to get out of debt and avoid bankruptcy. We understand the difficulty in money management and we’re always here to help you get back to a higher financial footing. If you need bankruptcy advice give us a call.