Filing for Gilbert bankruptcy can give you a fresh financial start after you have struggled with debt – perhaps for years. You can move forward on stronger footing, gaining greater control over your finances and reducing the chances that you will ever find yourself in that bad place again (though none of us can control whether a serious injury or job loss will set us back).
However, if you continue with bad financial habits, you will find yourself in over your head in debt and calling a bankruptcy attorney again. Here are four bad habits you should immediately stop if you want to avoid a future bankruptcy filing:
Ignoring the Problem
A lot of people just kick the can down the road when they start dealing with financial problems. They borrow money from a friend, pay a few bills late and expect to pay them the following month, or put things on credit and expect to pay it off eventually. They aren’t able to admit the problem to themselves, and they don’t take actions that will have long-term solutions.
Ignoring your financial problems will only make them worse. As soon as you notice signs of financial distress, put on the brakes. Reign in your spending, and talk to a financial consultant about long-term strategies to avoid debt.
Confusing Wants with Needs
Buying things makes us feel good. But that feeling doesn’t last, and the thing we bought might not continue to be useful or to bring us joy. To be responsible with your money, you need to think hard about whether you are buying is something you really need.
This is not to say that you can’t buy things just because you want them. But you should evaluate these purchases carefully, and they should be the exception and not the rule.
Buying Things You Can’t Afford
In America, it is very easy to get credit, and we are bombarded with constant messages about things we should buy to make our lives better. We are led to believe that our worth and our status is determined by what we own, and that leads many people to live beyond their means and to buy things they can’t really afford.
Instead of buying things on credit, make it a habit to buy things only when you can purchase them outright. You may need to use credit when you need something but don’t have the money immediately – such as an emergency repair for your car. But you should view credit as an emergency resource and not a means to buy the things you want when you want them.
Few Americans have any money in savings. When an emergency strikes, they resort to using credit cards or to taking out loans to get the money they need. That just compounds the problem by ensuring that more of their money goes toward paying debt instead of being available if another emergency arises.
You should always be saving. Even if your finances are tight, get into the habit of saving just $5 or $10 per week. As your finances improve, you can increase your savings. Aim to have an emergency fund that has at least six months’ salary in it. Then start saving for other goals, such as retirement, college assistance for your children, or that trip you want to take.
We’ve all made mistakes, and we all have bad habits we need to improve. Don’t take your bad habits as a sign that you’re a bad person. Just start taking steps to improve them so you don’t get into trouble because of them. If you find yourself overwhelmed by debt and needing to file for bankruptcy, don’t feel ashamed. Know that some bad habits may have led you there, and make a pact with yourself to change those habits and start fresh.
If you are considering filing for bankruptcy, contact Gilbert Bankruptcy Lawyers. We offer affordable legal counsel and representation for both Chapter 7 bankruptcy and Chapter 13 bankruptcy. We’ll review your financial details and let you know how bankruptcy might help you get the debt relief you need. Contact us today to talk with a bankruptcy attorney and start exploring your options!
Gilbert Bankruptcy Lawyers