Avoid filing for bankruptcy
Oh No! Are you filing with The BANKRUPTCY?
You have all heard of Donald Trump right?
The billion dollar business man that has filed bankruptcy like a million times and still remains wealthy…
You are probably asking yourself why filing bankruptcy is necessary when you have all that money. Good question. The answer is simply that people get in over their heads and they need a way out. Bankruptcy is not a good thing necessarily it’s just a way to use lawyers to broker a deal to get out of catastrophic debt, that will make you broke by eliminating that debt. It helps setting up structured payments for any remaining balances that could not be forgiven.
You don’t want to get to this point. Be smart with your money and avoid getting into situations where you will be in over your head.
Along with Donald we have had examples over the years of people that get in over their heads in debt. Mc Hammer is a classic case, Mike Tyson, Burt Renolds, Mickey Rooney, football star T.O. and recently to add to the list rapper 50 Cent.
The basic jest of it all this is that bankruptcy becomes necessary when you borrow too much against your assets. This means that you have no way to pay back what you owe to your creditors because that amount is valued higher than your net worth. It’s Very sticky situation…indeed a very sticky situation.
So… how do you avoid getting into situations like these? Here are some simple tips:
- The very most important of all things is don’t borrow what you can’t pay back right away. Credit cards and loans are a means of providing needed capital right away yes, but, if your gut tells you that you may be getting in over your head don’t do it.
- Use a budget to manage your money. Too often you are getting caught behind the ball because you were not keeping track of what was going out and what’s coming in. Budget everything, down to the penny if you have to, in order to make sure that you stay above water financially.
- Don’t supplement your income or your business with credit cards. If you already have business loans and other credit lines taken out the last thing you need is a revolving line of credit with 9 to 24.99 percent interest every month. This could get out of control very quickly if you have one bad month or an emergency that you have to take care of over your bill payment. So be smart and use the credit cards only when necessary and only when you can pay it off right away before any interest accumulates.
You only live one life and having a life of happiness and prosperity because you budgeted wisely rather than a life burdened by debt and stress because you are in over your head is a life we all should have.
So be smart and budget everything and keep your net worth in the positive rather than the negative.
For more TIPS and ways to find out how you can get Financial information for your family right away leave a comment and we will be happy to help you.
Happy Friday!!
See you next week
TK:)
