Although basic living expenses nowadays can be costly, there are ways to cut back and save money. Virginia residents who are struggling to get out of debt and avoid bankruptcy might wonder what is available for them.
Debt commonly occurs when spending exceeds income. Therefore, people who are struggling with debt might want to rethink their spending habits and create a budget. A budget is a tool to help people see where their money is going so they can get their expenses under control. If they are spending too much money on unnecessary items, such as cable and dining bills, a budget can help them figure out how to reduce those spending habits.
Another way a person can stay out of debt is to find a better paying job or take on a second job. Even a part-time job in the evenings or on weekends, such as delivering pizza or waiting tables, could provide more income to pay down debts quicker.
Those who are struggling with debt can better focus on paying off their present obligations by resisting the inclination to take on a home equity line of credit or vehicle loan. New debts could also lower a person’s credit score. People who are deep in debt could further consider negotiating some of their debts with creditors. In many cases, creditors may be willing to accept a partial payment or agree to a payment plan.
People who remain overwhelmed by their obligations might wish to speak with a lawyer about filing for bankruptcy. Such action could discharge a portion of their debts or reorganize their debt into an affordable payment plan.
Source: Credit, “How to Avoid Filing for Bankruptcy”, Leslie Tayne, Oct. 31, 2016