Quit Setting Your Money On Fire

Suggestions For Getting Out Of Debt

by Kathryn Watson

Getting into the habit of making bad financial decisions can place you under a large amount of debt throughout the years. You can end up owing more creditors than you are able to afford to pay back. If you are currently experiencing such a situation and want to make a change, there are several things that can be considered for getting your finances back on track. The way that you should go about handling the situation depends on the extent of debt that you are in, as well as your ability to pay creditors. In this article, you will find a list of tips that can guide you in the right direction in regards to getting your debts in order.

1. Take on a Part-Time Job to Make Extra Money

If the income from your job isn't sufficient enough to take care of your debts, you might want to continue working a second job. Simply apply for a part-time job that you can work around your other one. Set a goal to keep all of the money from the part-time job in a savings account until it has accumulated to a certain amount. Getting into the habit of spending the money can lead to it being gone before you know it. Only use the money in the event that you are in an emergency situation.

2. Organize All of Your Bills into One Monthly Payment

Sometimes the best way to put debts in order is to get organized. For instance, rather than paying a large amount of bills on different dates, you can get them consolidated into one payment. You would then only have to pay that amount of money at the same time each month for all of your debts. All you have to do is contact a debt consolidation company to get started. However, keep in mind that debt consolidation might not be the best option if you don't have a satisfactory amount of income to keep up with the payments.

3. Obtain Chapter 7 Bankruptcy Papers & File

Filing for Chapter 7 bankruptcy is one of the easiest ways to get out of debt. However, you must be approved by a judge before you can go through with the process. The first thing that you should do is obtain the papers that are needed for you to file, which you can find online or from companies like U.S. Records. You can then fill the papers out on your own, or you can seek assistance from a lawyer to make sure all of the information is filled in correctly. A lawyer can actually assist you from the beginning to the end of the process.