Poor money management skills are often at the heart of many bankruptcy cases. Many people fail to realize that they are going down a slippery slope with their debt until it is too late.
Money mastery remains a most elusive skill for many people, notes a bankruptcy lawyer from Barski Law Firm PLC in Scottsdale, AZ. According to the District of Arizona new case filings, more than ten thousand people file for bankruptcy each year. These findings indicate that many people in the state are buckling under the weight of a mounting pile of debt.
While getting out of debt might seem like a distant dream, it is an achievable goal. You only need to take proactive measures that can let you hit the ground running.
Live within your means
It might sound cliché, but this age-old advice rings true every time. The key to avoiding a crippling amount of debt is to keep your expenditure well below your expenses. While the spiralling cost of living can throw a spanner in the works, you still need to stay within your means. In most cases, this might call for drastic measures such as downsizing or even moving to a cheaper district. While it might seem like overkill, such measures can help you escape the rat race and have a real shot at financial freedom. Alternatively, you can find creative ways to shore up your income and offset the deficit.
Resist the urge to swipe
While credit cards offer some semblance of a solace, many people tend to abuse them a lot. Most of this abuse stems from failing to understand how a credit card works. See, the credit card company afford you a credit facility with the hopes that you will pay them back, in full, within the grace period.
Failing to do this, the company charges you interest for that and every subsequent month until you pay up the full amount. The longer you stay in debt, the more the interest rate piles up. To keep out of the debt trap, avoiding putting purchases on the credit card if you can’t afford to pay off the amount within the grace period.
Many people fail to notice that they are falling into a debt trap until it is too late. Luckily, it is possible to take credible measure and avoid falling into the trap that leads you into bankruptcy.