A recent study found that over 70% of American adults claim that they have been through a personal financial crisis in the last year. There is no denying that money problems can take a mental toll on you. In most cases, there will be tons of warning signs when you are on a one-way collision with a personal financial crisis. Noticing these warning signs and preparing correctly can help you avoid a lot of problems in the future.
Some people think that a financial crisis is something they just have to deal with. In reality, there are things you can do to prepare for an upcoming financial crisis and here are some of them.
Credit card debt is one of the leading causes of personal bankruptcy filings in the United States. The allure of credit cards is something that many American adults find simply irresistible. If you see that your reckless credit card spending is taking you down a dangerous financial path, you have to take action to limit the amount of damage these mistakes will cause. Limiting the amount of money you have to pay on your credit cards monthly can put you in a much better financial situation.
Contact your creditors and seeing if they can work out a better deal with you regarding the debt you owe is a must. In most cases, credit card companies will settle for a piece of what you owe instead of losing the money altogether.
When you see that you are headed for a financial disaster, you can either roll up your sleeves and get to work or cash in your chips. If you want to avoid making your financial problems worse, you have to find ways to generate more income quickly. This is why you need to entertain the possibility of getting a second job. Delivering food a few nights a week can help you generate additional income that you can use to pay off your debts.
Before you take on a second job, you need to make sure you aren’t spreading yourself too thin. While having a second job will not be easy, it is definitely worth the time and effort you invest.
If you feel like you have tried everything to solve your financial problems, but you aren’t getting anywhere, then it might be time to take drastic measures. Instead of allowing a mountain of debt to rob you of joy, you need to consider the option of filing for bankruptcy. The only way to figure out if bankruptcy is the right fit for your needs is by consulting with a lawyer. If they feel like you are a good candidate for bankruptcy, they will help you get this process started.
Are you in need of assistance with your bankruptcy? If so, the team at Hedtke Law Group can lend you a hand.