Tips Series: How to Avoid Bankruptcy

by . SantiMB .

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We all know how easy it is to avoid bankruptcy – just don’t buy anything with credit. But how realistic is that? How many of us would have homes, businesses and jobs if we did not have some sort of debt.

Debt surrounds us – in our personal and business lives, our country is even in debt. Don’t be fooled and convince yourself that you can live completely without debt. Debt is a part of everyday life. The trick is for you to control your debt. Do not let it control you.

Worldwide economic down turns have hit everyone hard no matter where you sit on the economic scale. You have been trying to trade yourself out of debt but things are just not getting any better. You find yourself facing the dreaded bankruptcy questions over and over again.

Keep a Tight Watch on Debt

It is important to watch what you spend. Simple. I know. It is so simple that many of us forget this simple rule. It doesn’t matter what you do for a living, it remains there whether you are in business or as a person.

If you are in business then you should already have a business plan in place, if not it is probably too late unless you plan your way out of debt. Be vigilant over your finances. You can’t go into any sought of life blindly without doing at least the basic numbers. It is just asking for trouble. If you keep recors of where you are financially you are likely to see trouble before it becomes too overwhelming. It gives you a chance to adjust your plan before things get of hand. Some things to do include:

If you spot a bit of an issue, make contact with your creditors post haste. They may be more sympathetic.
- Consider liquidating your assets.
- Look at consolidating your debt if you have unsecured debt.
- Look at easy ways to cut your costs and cut them.
- Seek advice. Talk to a financial advisor or to your accountant.
- Take positive action.
- Do not leave it too late.

Bankruptcy is the last resort; it will affect your life and credit rating for years to come. It may also affect your self-esteem and your life in many other ways. The best way to avoid bankruptcy is to keep a tight watch on all your earnings and payments.

If you seriously think you are in over your head, get advice about facing the dreaded bankruptcy questions before it is too late.

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