Although not everyone needs bankruptcy protection, there are still plenty of benefits of the process. However, most bankruptcy lawyers advise at least attempting other debt relief solutions first, unless you have an asset at risk of foreclosure or repossession. If you can afford to repay creditors and have the time to do so, there are few other solutions that can help resolve debts.
Doing It Yourself
One of the most underutilized resources available today is credit counseling. These agencies provide valuable resources and offer educational courses about all things related to financial matters. Credit counseling agencies can teach you about how to develop and follow a monthly budget, ways to make saving money easier and tricks to eliminate unnecessary spending. Further, they provide information about common credit traps that lead to debt and how to avoid them. The best part is that their services are extremely affordable and some are even free!
Getting educated and learning new skills is the best place to start on a path to financial freedom. However, putting these skills into action is where most people break down in the process. Find someone to hold you accountable in your monthly budget such as a spouse or family member. Sit down together to outline a plan for debt reduction and set a timeline for achieving small goals for debt relief. It is important that you develop a system that works for you and that you find rewarding if you are to be successful in the long run. Make keeping an eye on your money top priority.