How to Avoid Bankruptcy

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Post on 09-Aug-2015

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  1. 1. How to Avoid Bankruptcyby Debtcare
  2. 2. IntroductionNon-stop harassment from collection agencies, sleepless nights thinking about how youre going to get out of this financialmess , does this situation sound familiar?If youre deep in debt and cant see a way out, you might bethinking about filing for bankruptcy. However, before you rushand make a potentially huge mistake, let us show you that otheroptions await you.
  3. 3. Why Not Bankruptcy?First of all, why might bankruptcy not bethe best solution for you?It will destroy your credit historyNo more running a business for youIts an admission of defeatIt will most likely force you to sell all your assets
  4. 4. Rework Your BudgetOn a purely mathematical level, financial trouble stems frombad money management or, in other words, from spendingmore than you earn.So, one of the easiest ways to slowly get back on your feet is toanalyze your montly expenditure and see where you could freeup some cash to start paying up some of that debt.
  5. 5. Payment PlansOnce youve reworked your budget and have access to somemoney, call your creditors to explain your situation and ask if itwouldnt be possible to work out a payment plan.Two factors will play in your favor here:1) By taking this step, youre showing yourcreditor your goodwilI2) If they learn that youre close to filing forbankruptcy, they might prefer to get theirmoney slowly but surely rather than never
  6. 6. Borrow & SellIn your quest to avoid bankruptcy, you have to understand thatany means to free up some cash and accomplish that goal isworth pursuing.Thats why you have to think about selling some of your assetslike your property before the banks take the matter in their ownhands and leave you no choice.Also, dont be afraid to ask family and friends forsome help. Even if its not easy and degrading,its still better than the aftermath of bankruptcy
  7. 7. Consolidate DebtDebt consolidation works like this: you takeone big loan to repay all the others that arehanging. But if you still have to pay the sameamount, whats the benefit to it?Simply put, debt consolidation can help you lower your interestrates, especially if you have credit card debt. Another pro of thisoption is that you may even benefit from adiscount because the debt consolidator will beable to negotiate the loans when he buys themback.
  8. 8. ConclusionWhen the skies are grey, you might be tempted to think that theywill stay like this forever. However, you have the power toregain the control over your financial life.Whether it be through debt consolidation or an agreement withyour debtors, try and see how you can use the information wejust shared with you and finally get yourself out of debt!
  9. 9. Need some debt relief? Visit us for adviceat: http://www.debtcare.ca/
  10. 10. Need some debt relief? Visit us for adviceat: http://www.debtcare.ca/