If you are like most Americans you probably carry multiple credit cards, each carrying moderate to high balances. While the debt burden in America is growing, many people are finding themselves on the suffering end of the spectrum and with little place to turn. The main problem? Failing to prepare for the worst.
Stay Alert
As a Tampa bankruptcy attorney, teaching the importance of financial health is a main focus. Not only is it important to help people through tough times, but also to be an advocate for smart money management. Believe it or not, there are ways to improve your money management skills and even prevent financial disaster when unforeseen circumstances arise.
First, evaluate your current financial needs. Are you making enough income? Do you have enough money to pay your debts each month? Are you able to pay more than minimum payments on your accounts? If you answered “Yes”, then you are probably doing well enough to move onto a budgeting and savings plan. The most important thing to remember is that debt burdens can spiral out of control at the first sign of earning troubles, and having an adequate savings and a disaster plan in place is your best weapon of defense.
If you answered “No”, then it is time to evaluate your debt relief options. If you are unable to cover your debts or are barely staying afloat financially, it isn’t too late. Even if you have already landed in default on your debts, you can still turn your situation around. Evaluate your budget, including your debt payments. Find out how much you can afford to pay and negotiate your debt payments with creditors. Consider selling some of your non-essential assets, like luxury items and cutting back on your spending.