With the world becoming increasingly uncertain and the debt mountain building, many people are finding it harder to manage their financial affairs.
Here are some tips to help you avoid a bankruptcy filing, and some of the more common debts you may be facing.
Credit card debt Your credit card debt is probably the most common cause of bankruptcy.
While you can be in debt to your credit card company or the bank, the problem is not limited to them.
Credit card companies have been hit with a lot of criticism recently after they failed to meet their obligations to customers, and have faced allegations of high interest rates, fees and late payments.
The biggest culprit in the UK and US has been credit card companies, who have been fined for fraud and other wrongdoing.
Bankruptcy lawyer Daniel Fenn says credit card debts can have many different causes, including a loss of income or business, and you need to make sure you don’t have the financial resources to pay them off.
He says: “The biggest thing you can do is to look at your finances, and figure out what you’re spending your money on and where you’re paying it.”
He also advises avoiding a credit card bankruptcy filing in a country where the banks won’t issue you a credit report.
“There’s a lot that goes on behind the scenes that you can’t see,” he says.
There are also other financial matters you can try to resolve before filing a bankruptcy.
If you have a mortgage, you can get a mortgage guarantee, which is similar to a credit line.
If you’re a business owner, you may also want to consider getting a company-sponsored pension.
You’ll get a lump sum payment of up to $10,000 to cover your debts.
Debt-free living Another popular way to avoid bankruptcy is by having a debt-free life.
“If you live off the grid, you’re free to do what you like, without worrying about debt, with no debts or obligations,” Fenn said.
“You don’t need a credit check to know that you’re doing the right thing.”
However, there are a few things you should be aware of before you embark on a debt free lifestyle.
Fenn advises that you don.
“In general, people are going to say they don’t care about debt,” he said.
Fenn advises against using a credit or bank account, because you will be subject to the bank’s fees, charges and interest.
“The fees and charges will be high, and it’s a good idea to have a backup plan if you do decide to use one,” he advises.
However if you are still struggling with debts, Fenn recommends you consider a range of options.
He says you can choose from credit cards, credit unions, payday loans, car loans and the mortgage loan companies.
Payment plans There are a lot to consider when deciding what you should do with your financial life.
One thing you should look out for is what plans your credit cards will accept.
You should also be aware that you could be overcharged on credit cards if you don