Is Bankruptcy in Your Future?

If you are not sure how much debt you owe or how much money you have in your bank account, you could be heading down the road toward bankruptcy. When it comes to debt, you cannot guesstimate. You need to know an exact number to figure out where you stand financially. Maybe you’re scared or in denial of just how much you owe, but unless you want to end up filing, sit down and figure it out today.

Too many credit cards can equal bankruptcy. There is no reason to have over two or three cards and you should never apply for another one simply because you’re starting to get into debt. Keep your maximum at three cards and always pay off your balance.

Don’t use plastic for necessities. If you start using your credit card on grocery trips, you might end up buying more than you would have if you had just used cash. Remember, even though you don’t have to pay for those items today, a bill will still be coming tomorrow.

The minimum shouldn’t be your maximum. When you receive your credit card bill each month, pay it off in full. Or, at the very least, pay half of what you owe. Paying the minimum is how people fall into debt and how creditors make all of their money.

Understanding where you’re at financially is imperative if you want to keep bankruptcy out of your future. So, be sure to keep track of all of your bills and know how much debt you have incurred to help your finances stay out of the danger zone.

Previous: A Bankruptcy Conundrum
Next: Bankruptcy and Your Employer