So, you’ve filed for bankruptcy and you are off to a fresh start. You don’t want to slip back into the same routine of accruing debt, but you are unsure of how to establish stable spending habits. Preventing debt is relative simple, provided that you stick to certain rules you set for yourself. By following these financial strategies, you can avoid the stress and hassle of large and unmanageable debts:
Set a Budget. And stick to it! Many people create budgets for themselves but they allow themselves to step outside of them for “special occasions.” Don’t let yourself do this – plan ahead with your spending, if there is a large-ticket item you want to purchase.
Keep your finances well organized. This step goes hand-in-hand with setting a budget. By staying on top of your finances, you will always know when you are reaching the end of your budget, and you can plan accordingly.
Be careful when using credit cards. While it is important for you to use your credit cards, in order to build up (or restore) your credit, always use them to buy things you know you can pay off relatively soon. Lax credit card use is one way that people slip in over their heads in debt before they even realize it.
Save! You never know when you may need to dip into your savings. With every paycheck you receive, put some of it away for a rainy day.
Preventing debt can be easy – and it is an integral part in maintaining your financial security.
Birmingham bankruptcy lawyer Paula Greenway can help you if you are ready to file for bankruptcy and embark on a fresh financial start. To speak with us about filing for bankruptcy and taking the right steps toward debt prevention, contact Greenway Bankruptcy Law, LLC today at (205) 324-4000.