5 Tips to Avoid Bankruptcy

Bad financial decisions have very real consequences in the world. Be aware of what you spend and generate so that avoiding bankruptcy is easy and you can achieve your financial goals. phoenix bankruptcy lawyer deals this type of cases easily. Learn more in this article.

You can avoid bankruptcy with these tips

Good financial decisions will not only help you avoid bankruptcy, but you will also be assured that you can achieve your goals in the short, medium and long term. Follow these tips to avoid bankruptcy:

Do not pay debts with credit cards

If you see that the date of cut or payment of one of your debts is approaching, do not pay it with another credit card. Although this can buy you time, the truth is that it is also expanding your debt. They are interests over interests. Use your credit cards only for purchases and direct payments. Try to be a “totalero” or person who pays the total of your debt each court date. This will save you many interests and money lost in the long run.

Do not let the payment of your obligations exceed 30% of your income

Do not fill yourself with debt. Keep a record of your total income. If the payment of your debts is greater than 30% start a plan to reduce and get rid of your debt as soon as possible. This will only be eating your income and will not allow you to save. Act now.

Save between 10% and 30% of your income

What should be above 30% of your income, is your savings. Of course more than this figure represents a challenge, but little by little with a savings growth plan you can reach. Think of your savings as something more than you have to pay. Whenever your fortnight arrives, set aside money and pay it or separate it into another account. Do not touch that money unless it is to fulfill one of your goals or that you destine it for investments.

Learn to Invest

Saving is the first step, investing is the second. Investing allows you to grow your savings and even beat inflation. In other words, make your money work for you.

Make an agreement with your creditors

If you have reached a point where you really can not pay your debts, talk to your creditors and reach an agreement with them. Do not hide and do not avoid your responsibilities. This will only make it worse because the debt will grow, arrears interest will accumulate and it is there when you really run the risk of ending up in bankruptcy.

Stick to the law

In Phoenix, there is the Bankruptcy and Suspension of Payments Law . This law applies both to natural persons and to moral persons. If you have reached a point of insolvency, talk to a phoenix bankruptcy lawyer to stick to the law in these cases and you can start over.