Use Debt Consolidation to Aviod Bankruptcy

Deb Nevess
October 8, 2008 — 1,533 views  
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Debt is part of our everyday lives; the challenge is to get ahead financially and still avoid bankruptcy. Buying a home, car, and using credit cards instantly puts us all in debt. With worldwide economic difficulties affecting us everywhere interest rates are on the rise. And they keep rising. Have you noticed how much more you pay out each moth? Are the accounts piling up and the pile gets bigger every month, not smaller? Thoughts of how to avoid bankruptcy become more frequent. And when financial institutions put the rates up again it is just another blow. Time to consolidate your debts, and lower the repayments.

We all calculate the financial risks we take, but avoid bankruptcy right from the start, if you can. The best way to avoid bankruptcy is not to over spend. Put off buying things you don't really need until you have reduced some of the debt you already have. Make sure your bookwork is always in order, whether you are a business or an individual. This helps to avoid bankruptcy as you have control of the situation and an early warning trouble may be ahead. Good bookwork can help you put strategies in place to avoid bankruptcy earlier. If you neglect your accounting you are asking for trouble, and by the time you catch up it may be too late to avoid bankruptcy.

If things are really starting to look grim, contact your creditors before they contact you. Consider to approach debt consolidating experts, and ask how they can help you stay afloat. Talk to them about putting a payment plan in place to pay off the debt. Most will be sympathetic because you made the timely contact and, as long as the payment plan is fair, you'll have no problem to agree.

Something else to consider to avoid bankruptcy is consolidating your debts. This can save you a lot of money on interest rates and should bring your monthly outgoings down to help reduce that pile of bills. Tighten your belt. Cut down on luxuries and anything else you don't need. Before you buy something stop and think, do I really need it? Or do I just want it? If you are trying to avoid bankruptcy and the answer to this question is you just want it; don't buy it or spend the money.

Take a look at what you own. Is there anything you can sell that will help you avoid bankruptcy? A house, land, vehicles or machinery you don't use? It is a good time to downsize your material stuff. Use it as an opportunity to clear out your life of things you no longer use or need. You never know, it could help you reduce your debt and avoid bankruptcy.

Take positive action. Don't sit there worrying about it as that won't fix anything, will it? If you are truly trying to avoid bankruptcy, get out there and seek financial advice. There are plenty of financial counselors around that can help you put strategies in place to avoid bankruptcy. Worrying is not going to help avoid bankruptcy. Have you heard the saying you attract what you think about? If you think positive thoughts and are proactive about getting out of debt then you will. If you sit around worrying about it, you will probably be bankrupt before you know it.

About the Author

Debt consolidation should always be considered before bankruptcy. Seek the relevant financial info online, and consolidate your debt and minimize repayments. Deb Nevess and her website http://debtmediators.com.au are here to help to avoid serious financial consequences of becoming a bankrupt.

Deb Nevess