Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Finding a Bankruptcy Alternative and other Debt Consolidation topics.
Life happens, so there may be situations where you may find yourself in a tough financial predicament. The best way to avoid bankruptcy is just by being disciplined, and practicing good money management and fiscal responsibility. If you can't afford to pay cash for it, you can't afford it.
Avoid high risk and speculative investments. The dot.com, and real estate booms and eventual busts are responsible for contributing to the increase in bankruptcies. If you ever find yourself falling behind on your bills, call your creditors immediately! In most cases creditors want to assist and work with you to get caught up on your bills. You may be able to work out a temporary payment plan that allows you to reduce your payments. Remember that bankruptcy is not a walk in the park. Your financial situation does not automatically disappear. Explore all options before going down this path. Consider cutting back on all unnecessary expenditures. You may even have to sell some of your assets or apply for a hardship loan from your 401(k)
|Jennifer Mathes, Ph.D.|