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Make a plan for your financial future even when you have debts

On Behalf of | Aug 16, 2019 | Bankruptcy

Being in debt can become a hopeless feeling when it gets to the point where the minimum payments are taking up most of your income. Just making ends meet can be a huge challenge. In some cases, it is impossible. If you are at the point where you think that all is lost, it is time to sit down and try to make a plan for your financial future.

One of the first things that you need to do is set a budget. You need to know your income and all the bills you have. After you do this, you can look into where you can save money. This might be canceling cable and other unnecessary expenses. You should then make a plan that accounts for every dollar you earn. Figure out how to put as much money toward your debts as you can. Start by paying off the lowest balance debt so that you can gain momentum to tackle the bigger ones.

There is a chance that you might have too much debt to handle on your income. At this point, you have two options. You can either boost your income through another job or you can do away with the debts. If you can’t boost your income, you might consider bankruptcy.

Filing bankruptcy gives you a fresh financial start. In the case of a Chapter 7 bankruptcy, you won’t have payments to make. In a Chapter 13, you will be placed on a payment plan to get a portion of the debts paid off. Once your bankruptcy case is over, you will be able to build up your financial future.