Sadly, debt is a way of life for many of us. With mortgages, bank loans, and credit cards to pay off each month, we can face an unbearable strain on our finances. Filing for bankruptcy may be something some of us consider doing out of necessity or as a relatively quick and easy way to solve our financial problems, but there needs to be some consideration of the pros and cons. As is stated in the linked article, some of the pros include cleared debt and relief from threatening letters from creditors, but the cons include long-term damage to our credit history reports and a possible loss of some of our assets.

Should you be having financial struggles of your own then, you need to think carefully before going through with bankruptcy. You should seek as much professional advice as you can beforehand, such as an accountant, a representative from a debt agency, and perhaps a bankruptcy lawyer from a legal firm such as Simon Law Group. If bankruptcy is an inevitability for you, then so be it. However, if there are ways to avoid going through bankruptcy proceedings, then you should definitely make them your priority.

Let’s look through a couple of ways to avoid going down the bankruptcy route:

#1: Sell some of your assets

You might be reluctant to do so; however, considering you might lose some of your assets during bankruptcy anyway, you should still think about this as a serious option. Look at your belongings, and for anything that isn’t a necessity in your life, look at the best places to sell them online. Then put the money received into paying off anything you owe your creditors. If you have made a significant dent into your debts, you might then be able to negotiate a fairer interest rate with your loan providers.

#2: Cut down your expenses

If you’re able, you might consider downsizing into a smaller property, as you will have less to pay on your household bills and possibly reduce your rent or mortgage too. If this isn’t a possibility for you, then you should still try and reduce as many of your expenses as you can. Eliminate any unnecessary expenses, such as subscriptions to magazines and streaming services, and look for ways to reduce some of your necessary expenses, such as your food bills and utility costs. Definitely start bringing your lunch and stop eating out!

#3: Speak to your creditors

In the majority of cases, your creditors aren’t heartless people. There may be ways they can help you, such as negotiating lower interest or by offering you a repayment plan to pay off your debts. Speak to them and let them know of the difficulties you are under. Generally speaking, provided you are paying something rather than nothing, they might work with you to get you out of financial difficulty.

#4: Seek help from a debt charity

We mentioned this earlier, and for good reasons. A debt charity representative will help you to budget your money, explain debt-relief options to you, such as debt consolidation, and will help you deal with any creditors that may be harassing you for money. Basically they’ll help with steps 1-3. Do your research online and look for any debt charity local to you. Book that appointment today as their professional support may be just what you need to get out of the financial jam you are stuck in.

After taking the steps above, you might be able to get yourself on financial track before bankruptcy is your only option. If you do get back on your feet, take further steps to avoid debt, as this way, you stand a better chance of both securing your financial position in both the short and the long-term.

Disclosure: Some links are affiliate links that may earn me a commission.