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Tips for If You Find Yourself in Debt Again

It is common for those who have experienced a bankruptcy and are on track to a debt free life, to feel like they are relapsing. Debt might start to pile up again, but do not worry, there is a fix!

To keep debt free and avoid going down the stressful road that lead you to bankruptcy in the first place, it is important to first stop using credit card for at least 30 days until you feel financially stable and you see your debt start to dwindle. Keep your credit cards out of your reach to prevent yourself from adding new debt. Along with not adding charges to your cards it is also beneficial not to borrow money. This will keep you from the mind set of paying back people when you have money, therefore you won't have any owed debts on top of credit card bills.

All debt is not avoidable, secured debts, such as, car loans, and mortgage or rent, are important to focus on paying off on a regular monthly basis. After these debts are paid each month you can put your remaining income towards necessities: food, insurance, gasoline and utilities. If there is any left-over disposable income, you should put that money towards paying unsecured debts to insure you do not financially put your family at risk.

Here are tips one should follow to help rebuild savings and make life less financially stressful:

1. Sell Items that you can live without. One way to make a decision if an item is not needed is if it costs you more to keep then if you were to rent it on occasion.

2. Give yourself and your family an allowance. This allows for a restriction on the "spending" money each person it allotted for miscellaneous items throughout the week or month. When the money runs out they are not able to spend anymore.

3. Try renting out a room in your house to boost income.

4. Track everything you purchase for a month. By doing this you will see where money is being spent unnecessarily and then you cut back on those expenses each month.

5. Examine where you are spending money on necessities more than needed. For example, research multiple services before deciding on an insurance provider, that way you can see where you get the most for your money.

Following these tips are small changes anyone can incorporate to their daily life. By implementing each one, they will put a debtor back on track to not having to worry about if they have enough money to pay bills each month. However, if one does find themselves overwhelmed by their financial situation, it is important to contact help, such as a well knowledge attorney who can guide you to a debt free life.

Works Cited

Ryan, Paula Langguth. Bounce Back from Bankruptcy: A Step-by-step Guide to Getting Back on Your Financial Feet. Tracys Landing, MD: Pellingham Casper Communications, 1998. Print.

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