How to Avoid Bankruptcyby Debtcare

Introduction

Non-stop harassment from collection agencies, sleepless nights – thinking about how you’re going to get out of this financial mess –, does this situation sound familiar?

If you’re deep in debt and can’t see a way out, you might be thinking about filing for bankruptcy. However, before you rush and make a potentially huge mistake, let us show you that other options await you.

Why Not Bankruptcy?

First of all, why might bankruptcy not be

the best solution for you?

•It will destroy your credit history

•No more running a business for you

•It’s an admission of defeat

•It will most likely force you to sell all your assets

Rework Your Budget

On a purely mathematical level, financial trouble stems from bad money management or, in other words, from spending more than you earn.

So, one of the easiest ways to slowly get back on your feet is to analyze your montly expenditure and see where you could free up some cash to start paying up some of that debt.

Payment PlansOnce you’ve reworked your budget and have access to some money, call your creditors to explain your situation and ask if it wouldn’t be possible to work out a payment plan.

Two factors will play in your favor here:

1) By taking this step, you’re showing your creditor your goodwilI

2) If they learn that you’re close to filing for bankruptcy, they might prefer to get their money slowly but surely rather than never

Borrow & Sell

In your quest to avoid bankruptcy, you have to understand that any means to free up some cash and accomplish that goal is worth pursuing.

That’s why you have to think about selling some of your assets like your property… before the banks take the matter in their own hands and leave you no choice.

Also, don’t be afraid to ask family and friends for some help. Even if it’s not easy and degrading, it’s still better than the aftermath of bankruptcy

Consolidate Debt

Debt consolidation works like this: you take

one big loan to repay all the others that are

hanging. But if you still have to pay the same

amount, what’s the benefit to it?

Simply put, debt consolidation can help you lower your interest rates, especially if you have credit card debt. Another pro of this

option is that you may even benefit from a discount because the debt consolidator will be able to negotiate the loans when he buys them back.

Conclusion

When the skies are grey, you might be tempted to think that they will stay like this forever. However, you have the power to regain the control over your financial life.

Whether it be through debt consolidation or an agreement with your debtors, try and see how you can use the information we just shared with you and finally get yourself out of debt!

Need some debt relief? Visit us for advice at: http://www.debtcare.ca/