The national annual trend for bankruptcy filings has them on a slow but steady decline over the last couple years. This trend, however, is being driven by some key factors. Simply put, consumers are borrowing less money. Doing so creates less of ability for someone to default on a loan. Another disturbing fact is that people who may be on the verge of bankruptcy are able to take out credit more easily now than they did a few years ago. But these factors have not solved the problem of individual money management; or should we say, mismanagement.
The inability to properly manage your money, loans, and your line of credit is what leads some people into bankruptcy. It is not because they were unable to obtain another loan to avoid filing. Searching for more credit or loans to “patch the hole” is only a temporary fix and will not keep you from sinking.
The ability to properly manage your money and avoid such situations is the key to avoiding bankruptcy. When you notice that your finances may be getting a bit out of hand, step up to the plate and straighten them out. If you need assistance and guidance then you must seek it out. There are government-approved credit counseling services to assist you.
The importance of personal money management cannot be understated. But, if the time comes where you are seeking another loan just to patch a hole that seems to be growing by the day, maybe it is time that you seek out a bankruptcy attorney and discuss your options. Don’t continue to let your hole grow larger.