Many consumers out there consider debt as a way of life. So overwhelming can it be sometimes that, bankruptcy appears to be the only answer. Because of the negative effect on your credit score, it is wise to consider ways to avoid filing bankruptcy. Once you find a bankruptcy alternative that saves your credit, I will wholeheartedly ask you to take it, even if it will require more time or stay a little longer or cost you more to get rid of your debt.
Be careful, and make sure you avoid filing bankruptcy if you can sell your assets. You can sell what you can do without and use the money to pay off your debts. Swing to action right away if you find out that you can’t afford to make payments any more. It could be too late for you if you found behind a payment!
You can sell off your furniture, jewelry, electronics on Craigslist or Ebay to raise money to pay your debts. You might consider this a radical way to avoid filing bankruptcy. But, do not worry as this is but only a temporary measure. See it as a way to avoid filing bankruptcy and spare your credit. You will soon get past the inconveniences.
You can also avoid filing bankruptcy by paying your way out of debt. If you take a critical look at your budget, you should be able to cut out those cute, expensive items that you love to have but can do away with for now. I mean satellite TV, land line and cell phones. You can cut down on these expenses without much pain. If you have cut down your expenses enough and still can’t avoid filing bankruptcy, I think you should consider working overtime or part time to raise more funds.
In addition, your creditors can help you avoid filing bankruptcy. They would rather prefer to get some money from you, to getting no money at all. Let them know that you are having financial difficulty and are trying to avoid filing bankruptcy. Show your willingness to pay the debt and ask if they can help ease the burden by lowering your monthly payment or reducing your interest rate, or even both! You will find many credit card companies offering many kinds of programs for this type of situation. A point of caution here is that, you should make sure your interest rate and monthly payment actually go down first. Or else, you might even have to pay higher minimum payment.
Lastly, you can go for consumer credit counseling to avoid filing bankruptcy. If you find it painstaking to work with your creditors yourself, you can seek professional help. Look for a consumer credit counselor who is experienced with working creditors to get your interest rates and monthly payment drastically reduced. You should strongly consider this as an alternative to help you avoid filing bankruptcy. The debt management plans may appear out of reach, but if you look closely enough, you can find enough holes in your budget which will help you make the payments with ease and avoid filing bankruptcy!