It isn’t unexpected. People are spending more money than they can afford on things they can’t afford, such as expensive, high-priced mortgages. That has cause the bankruptcy rate in the US to spike to unprecedented levels.
It doesn’t take much to turn things around. Unlike what you might believe, budgeting isn’t all about restricting what you spend and cutting all fun out of your life. It’s really about understanding how your money.
Buy with cash only: Tear up the credit cards. That is best advice anyone can give to you right now. Why is it so easy to overspend? There are a number of reasons. So when you understand what causes overspending, you can help put a stop to it and keep your budget on track.
Some people may choose to divide their cash up into envelopes. Budgeting can be like going on a diet. You start with good intentions, but after a few weeks you drift off from the plan. Don’t let that happen to you.
Resist the “buy it now” urge: If you really want or need something, it will be there tomorrow. Don’t squander your financial future for a few guilty pleasures today if it isn’t in your budget. If you know that you can’t afford an activity, don’t cave in.
Plan your spending: You need to make a budget and then adhere to it as closely as possible. Build on the positivity you need to maintain motivation. What can happen is you will get into the habit of following your budget and it will be a whole lot easier that when you started. If you lose that motivation, you become easy.
Don’t be afraid to ask for help. The feeling of accomplishing your financial goals is intoxicating, but continue to push yourself to reach these goals. And ask your family to give a little bit of aid to that.
Finally, the worst thing you can do is hire a lawyer you can’t trust to help you. Make sure your bankruptcy lawyer is the tops.