Tuesday, July 31, 2012

Staying Debt Free After Bankruptcy

Your bankruptcy filing went through without a hitch and all your debts have been discharged. You may now rest easy knowing that the creditors can no longer harass you for payment. But what we see in the statistics is that many people who have filed bankruptcy will find themselves filing for bankruptcy once again in their lifetime. Staying out of debt doesn't have to be hard work. Simply adopting new money guidelines can lead to lasting change in our money lives. Here are some easy steps that we can all take in order to avoid sinking into the debt cycle once again.

1. Educate Yourself

It is important to have tight control over our monthly expenditures. If you don't know what you are spending on any given month then grab a small notebook or your smartphone and write down every single dollar that leaves your hands and what it was used for.  This simple exercise is often alarming because few people actually realize what they are spending on things like entertainment, coffee, gym memberships, clothing etc. 

2. Budget, Budget....... Budget!

Once you know where your money is actually going, you can begin to decide for yourself where you really want it to go.  A good resource for budget allocation can be found here. 

3. Prepare for the Unexpected

It is the unexpected life event that usually leads to catastrophic debt. Pay special attention to the portion of your budget that goes towards emergency savings. These savings will be key to sustaining your family in the event of an emergency. It requires sacrifice to deny ourselves tickets to the baseball game or a dinner out with our deserving spouse, but these sacrifices will translate into peace of mind when the next inevitable emergency comes our way.   

If you find yourself with an insurmountable amount of debt, then it might be time to consider bankruptcy. Call  Sagre Law Firm at (305) 266-5999 for your free consultation and take the first step towards financial freedom.

We are a debt relief agency.