A lot of people in the United States are living paycheck to paycheck each day. Usually these checks are just enough to pay the bills at the end of each month, which unfortunately are leaving most Americans with huge debts and bringing them one step closer to being homeless. For a lot of people bankruptcy seems to be the only option, but there are some other steps that everybody needs to be aware of before filing for bankruptcy. And as the #1 on yelp for bankruptcy attorney san diego, we strongly suggest you consider these steps.
Bankruptcy isn’t the solution that everybody is always looking for. It’s a process that takes a lot of time and isn’t right for everybody. Sometimes it can take up to 10 years afterward to get an acceptable credit interest rate. In some cases you may not even get approved to file for bankruptcy, so before filing you might want to look into some of the options listed below.
If you’re a person who is stuck with a lot of debt and just can’t figure out how to pay it off, one step to try would be to reorganize or consolidate the debt. What this means is that you may be able to take all of your credit card payments and combine them into one payment with a low interest rate. There are loads of debt consolidations companies out there that can help you try to do this. One thing to always consider and remember is that having a good credit rating can be helpful, and in most cases is a necessity to get low interest rates. If you are person that has a low credit rating, you might want to consider a different option because your payments will most likely be too high to afford.
Another option to start with is to sell items that you don’t need any more. Over the years we collect a lot of clutter such as iPods, old cell phones, DVDs, game consoles, videogames, computers, and even clothes that we don’t need anymore. A good place to look at to start selling these items is eBay. There are plenty of people on eBay looking for good deals on all of the hottest items today. If you have them laying around your house and don’t need them, chances are you could probably make some decent money getting rid of them.
If selling isn’t really your thing you may be able to pick up some more hours at your job, or even work on weekends and over time if you’re allowed. Look into getting another part-time job to make extra money for a while, or you can go down the route of asking your boss for a raise. If you’ve been working at the same company for many years, it may be a better idea to just ask for more hours as they are more likely to give them to you.
The last step to try before even considering bankruptcy will be to call or write a letter to everyone you owe money to, in order to inform them of the fact that you are thinking about filing for bankruptcy. Credit companies may be willing to help you out as they are trying to make money off of your debt. If you file for bankruptcy, the credit companies will not be able to get paid as you will have no money. They may work out a payment plan with you, or work out a deal where you would pay less to them.
The final step would be to consult a bankruptcy lawyer. A bankruptcy lawyer will educate you about all of the bankruptcy laws and let you know what your further options are.