You really don't want to go through the
red tape of bankruptcy; the lawyer fees and the further scarred
credit rating. And, if your one to put yourself in the
entrepreneurs' shoes, bankruptcy would hurt your business if everyone
filed because they didn't want the hassle of paying bills. Morally,
bankruptcy is the wrong way to go, but trials and tribulations have
caused you to consider this "way out." Maybe it isn't too
late to avoid bankruptcy and get out of debt in other ways. So here
are some examples to assist you with your financial burdens:
Debt Consolidation/Debt Management Programs
There are many companies
who will assist you with consolidating your debts, but you must be
careful there are some scams out there too. Most of these companies
charge fees. Ask someone who has used a consolidation program other
than a credit counseling service. These companies generally do not
stop the interest, thus it takes longer to pay bills off.
Cut up Credit Cards, particularly
those high interest ones.
Forget what you heard about keeping one
credit card in case of emergencies. Most people max out the one
credit card they have left; therefore they still need monies in a
crunch. Learn to save money. Discipline yourself to take a portion
of monies from each paycheck and put into a savings account. If you
can’t set aside the money, you may want to consider finding a
company that will automatically deduct monies and put them into a
savings account for you.
Stop leasing cars, televisions,
computers and entertainment systems.
There has been many news shows that
have shown leasing companies charging more for products than what
they are worth. They do this by allowing you to pay a very low
monthly fee to own products such as a living room set. It is more
sensible to save for the item that you need, rather than paying a
company monthly and risk being charged additional fees when you are
late. In some cases, customers have found they don’t need the
furniture and will send it back to the company after paying on it for
some time. Now they have wasted money, because the company will not
allow them to take the money they paid for one item and transfer
those payments on something else.
Forget using your checkbook.
If you find yourself often bouncing
checks, the best way to begin a new habit is to break an old one.
Don’t bother writing checks; instead use money orders. This way
you have the money in hand and will not have to be concerned with the
worry of wondering when someone will cash your check.
Avoid unnecessary insurance plans.
Are you transitioning a lot between
jobs, living arrangements and have other personal changes? Then you
don’t need to spend money on insurance plans until you are more
stable in your life. Otherwise, you will find yourself making
commitments, then breaking them and eventually losing money. Get
stable in your life first. Then consider a whole life insurance plan
that you can borrow money from in the future if you are ever in a
financial crisis. If you know you will be settling down in one
location for a period of time, then consider renter’s insurance.
Manage money with PC software.
Sometimes people do well when they are
in complete control of their finances. Consider purchasing a
software program that will alert you to when bills are due, assist
you with managing your bills, and help you with savings.
Don't convince your child to go to
college if you can't afford to help them.
Too many parents are not able to assist
their children with college expenses and as a result many children
are in debt before they graduate and can’t keep up with the student
loans. Instead, explain to the potential college student that the
loan he or she takes out for school must be paid back. Be honest
with your child about your money troubles, so that they aren’t
anticipating your financial assistance. If the student plans on
studying something such as acting, and the future salary attained is
not the equivalent of what the loan is worth in the future, he or she
may want to consider another career.
Avoid eating out at restaurants.
If you must go out to eat, research
which ones are the least expensive and use coupons whenever possible.
Search for cheaper gasoline service
stations.
Pay attention to special rates. Avoid
gasoline credit cards--they have very high interest rates.
Break from the holiday hustle and
bustle.
There is no rule that says you have to
buy someone something every year. Take a break from the holidays and
when you are ready to start again, have a spending plan. Don’t try
to buy gifts for people who have everything, sometimes doing
something simple is better such as buying a card and putting some
money in it. You can also avoid feeling obligated to buy for family
and friends by staying home for the holidays.
Watch cable rather than visit the
movie theater or video store.
Avid movie watchers will want to take
out their calculators on this one. If you are spending more a month
on video rental then what a cable monthly bill costs, then you may
want to become a subscriber.
Cancel all membership to music clubs
and book clubs.
Make the time to read what you already
have. Most companies are charging you more than what the books and
CDs are worth (add shipping and handling costs as well.) If you must
have a certain artist or author, shop around for the cheapest price
rather than joining a club.
Utilize your existing job to increase your wages
Offer to work additional hours, ask for
more responsibilities, and request to be placed on projects to get
your manager’s attention. When you make efforts like these, you
will put yourself in a position to make more money.
Get a second job part-time
This will put you on the fast track to
achieving your goals as long as you plan to use the extra money for
your intended goals.
Advice for parents: Stop buying for
your 16 year old!
Tell your child to get a job. If you
stop buying, they will start working.
Make a plan for your finances before you spend it
Each time you receive money you know
what bills are due and what money you will need to pay for groceries,
transportation, childcare, lunch, etc. With a plan, you will know
exactly how much money you can spend on each responsibility on your
list. You will also know how to best curb your finances in the short
term and how to better save in the long term.
Use every opportunity to save money
Coupons, store points, product offers,
sales, etc. There are plenty of opportunities to save money. Use
them! When you know you buy a lot of a certain product each month,
then buy it in bulk when it’s on sale. Go to stores that double
coupons or provide bargains to consumers for visiting. Don’t waste
time shopping at stores that rarely have “real” sales. You will
know how “real” those sales are when you comparison-shop. Find
similar stores offering the same items and see how their prices
compare with the others.
The more you know about money management, the better you will be able to handle your financial woes. Also, consider software programs, television programs that provide tips on saving and spending money and offline and online business seminars as well.
Nicholl McGuire
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