There is nothing worse than the feeling of living paycheck to paycheck. Living on ramen noodles is fine when you’re a student, but when you’re a grown adult and you have kids to raise, the last thing that you want to do is to have to continue and be broke. Being broke often means no luxuries, and sometimes those luxuries include paying the bills! Instead of going bankrupt, you need to get on top of your finances as early as possible so that you don’t become a statistic. Even when it feels like you’ve come to the end of the road, you can still get together some tactics to ensure that your finances are back on track. With that in mind, we’ve got some tips to help you to avoid going broke.
- Sell the assets you have. It’s very likely that getting to this level of debt has led you to build up some assets along the way. When this happens, you can start to sell them off and use that money to clear off a huge chunk of debt. This will help to remove the risk of bankruptcy and help you to get back on track. Speaking to experts like Canyon Legal Group can also help you with selling those assets. You don’t have to be broke, and it’ll take some planning to get you out of it if you already are, but that doesn’t mean that it has to stay that way!
- Cut back on what you’re already spending. Whether you get some help from a spreadsheet you set up, or you speak to a financial advisor to take you through the money you have, you need to think about cutting back on your spending as much as possible.
- Don’t bury your head in the sand. One of the things that people who are broke (and we’ve all been there) have in common, it’s avoidance. We’re very good at pretending the debt isn’t happening and burying our heads in the sand! Instead of doing this, you need to communicate with your creditors and come up with a plan. If you then default on the next plan, come up with a new one again!
- Ask your boss for a raise. A key way to ensure that you beat being broke is by asking your boss for a raise! If you can’t do that, increase your income in other ways and stop panicking too much – there are always ways to make more money and pay off debt! You can get a second job and if you have a partner, ask them to do the same. The pair of you together can pay down a ton of debt if you’re both taking it on.
- Think about consolidation. If you’re able to, consider getting a larger, low-interest loan and paying off all of your high interest debt. This has to be a longer term solution for you because if you’re going to start spending again, you need to make sure that this doesn’t also put you in the red.
Leave a Reply