Simple, yet effective, tips to steer clear of bankruptcy

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 » Simple, yet effective, tips to steer clear of bankruptcy

Simple, yet effective, tips to steer clear of bankruptcy


Updated: December 26, 2012

Today, being bankrupt is essentially considered to be one of the worst financial situations that you could possibly end up in. In fact, bankruptcy has far reaching consequences, one of which would be damaged credit history. The fact that you were bankrupt is going to remain in your credit record for almost a decade. As you might have figured, have this on your record is definitely not a good idea. You might find it virtually impossible to get any kind of loans or sanctions or funds for buying cars or financing a house. It is important that you know more about how to avoid this situation at any cost.

Financial planning

In a majority of the bankruptcy cases, the bankrupt situation could have been avoided if action was taken beforehand. Hence, it is important to know how it might be possible to take control of your finances and put an end to chaotic spending as quickly as possible. Have a clear idea about what you can spend on, how much money you have in the account and what are the things that you ought to avoid. In this way, you can be assured that you will never really have to worry about being bankrupt.

Controlled expenses

Expenses are necessary, but unplanned expenses should be restricted as much as possible. Hence, you need to watch out for expenses that you can avoid which might end up with you landing in a lot of debt. There are many different kinds of expenses out there, but know the kind of expenses that you can avoid will give you a better idea about what you ought to do and how to keep things in control. You should know that the fastest way to bankruptcy is by means of uncontrolled expenses.

Borrowing carefully

Everyone needs to take out a loan; there is no shame in that. However, when you are borrowing funds, make sure that you can pay it back in due time, with your current salary. If you feel that you will not be able to repay the money, consider holding back on the loan. Don't ever borrow money without being sure of the fact that you can pay it back. This is one of the most dangerous ways in which you can land in a lot of mess. As much as possible, avoid this situation and ensure that you are not in it. After all, bankruptcy can happen quite quickly, especially if you don't take action beforehand.

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:

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Posted: February 12, 2018

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!