Avoiding bankruptcy while there is still time

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Avoiding bankruptcy while there is still time

Avoiding bankruptcy while there is still time


Updated: December 26, 2012

Many people fear the word bankruptcy. After all, going bankrupt is definitely something that most people would not look forward to. There is quite a lot of damage that this can do, and this is not just financially. Many people have long-lasting psychological issues that arise from going broke. Hence, for the sake of your well-being as well as that of your family`s, it is recommended that you take care and be smart with your money before it is too late. After all, you can never really be sure as to what kind of problems, you might end up facing if you end up going broke.

Plan ahead

If you absolute fear going broke, then you should plan ahead and save some money for emergency purposes. Never be overly confident about how things might be, since there is a possibility that things can drastically change tomorrow. Hence, if you want to avoid this, you should plan and ensure that you have some money saved, if something unpleasant were to happen tomorrow. In this manner, you can be assured that you wouldn`t have to be worried, even if you lost your job or something worse was to happen.

Borrow sensibly

The primary reason people declare bankruptcy is because they weren`t carefully with their finances. Effectively, they ended up spending more than they should have and often, money that was not theirs to begin with. Hence, be practical and don`t borrow more than you require. Until you absolutely need that money, it is advisable that you borrow a small amount for now, and perhaps increase the amount later on, when you really need it. In this way, you can offset the debt for a little while, and not have to pay it all at once.

Inculcate good habits

Do you often find yourself spending more than you need? If this is the case, it might be a wise idea to control your expenses and take a good look at how you spend your money typically. If you notice a pattern, it might be time to change it and perhaps think more about how you might be able to avoid some expenses, until you are financially stable. Don`t get worked up, and give yourself sufficient time to handle impending expenses.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading
How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading