You Can Avoid Bankruptcy
In these current difficult financial times there are many individuals and businesses who are struggling to pay their debts. The looming presence at the end of this process is bankruptcy.
For lots of people the idea of going bankrupt is very scary, this is understandable. It may end up being their only choice but there are many things that can be done to avoid ending up in this situation.
To begin with stop hiding all the bills as they arrive. This is a very understandable reaction but ultimately id self defeating. A deep breath must be taken and the bills opened. It is vital that you are aware of the demands on your finances.
Sit down and write a budget. This is far easier than it sounds. Simply write down what you earn each month after tax at the top of the page. Underneath note all your expenses. Start with the essential such as mortgage/rent, council tax, utilities, phone, credit card repayments, loan repayments and house insurance.
After that write down other big expenses such as car insurance, petrol, food, drink and satellite TV. Then write all those little bits of spending you do everyday such as drinks, lunch, newspapers and magazines.
At the end of it add up all your expenses and see what is left. If the answer is nothing you have a problem that needs to be addressed.
Start by looking at your expenses. When you go shopping do you buy all branded goods and expensive items? If so then switch to the supermarket own brands and you'll save a fortune. The packaging may not look as good but most of the food tastes exactly the same.
Can you get a better deal on your mortgage and decrease the monthly payments. This may not be possible but is worth looking at. Does your mortgage provider allow repayment holidays? Some do and the few months can give you the chance to concentrate on paying off the expensive credit cards bills.
Look at your daily spend on all the little bits and pieces. This is often easy to cut down on. Stop getting that expensive take away coffee, read newspapers on line and take in your own food for lunch. Not very exciting but will easily save you over a hundred pounds a month.
If you just do these simple steps before the debts build up you will be able to avoid the possibility of going bankrupt and in fact will pay your debts off quicker than you thought possible.
For lots of people the idea of going bankrupt is very scary, this is understandable. It may end up being their only choice but there are many things that can be done to avoid ending up in this situation.
To begin with stop hiding all the bills as they arrive. This is a very understandable reaction but ultimately id self defeating. A deep breath must be taken and the bills opened. It is vital that you are aware of the demands on your finances.
Sit down and write a budget. This is far easier than it sounds. Simply write down what you earn each month after tax at the top of the page. Underneath note all your expenses. Start with the essential such as mortgage/rent, council tax, utilities, phone, credit card repayments, loan repayments and house insurance.
After that write down other big expenses such as car insurance, petrol, food, drink and satellite TV. Then write all those little bits of spending you do everyday such as drinks, lunch, newspapers and magazines.
At the end of it add up all your expenses and see what is left. If the answer is nothing you have a problem that needs to be addressed.
Start by looking at your expenses. When you go shopping do you buy all branded goods and expensive items? If so then switch to the supermarket own brands and you'll save a fortune. The packaging may not look as good but most of the food tastes exactly the same.
Can you get a better deal on your mortgage and decrease the monthly payments. This may not be possible but is worth looking at. Does your mortgage provider allow repayment holidays? Some do and the few months can give you the chance to concentrate on paying off the expensive credit cards bills.
Look at your daily spend on all the little bits and pieces. This is often easy to cut down on. Stop getting that expensive take away coffee, read newspapers on line and take in your own food for lunch. Not very exciting but will easily save you over a hundred pounds a month.
If you just do these simple steps before the debts build up you will be able to avoid the possibility of going bankrupt and in fact will pay your debts off quicker than you thought possible.
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