Understanding bankruptcy and avoiding it | VPHas Money - VPHas.org

if there is one place you do not want to experience in this world, it is bankruptcy. In reality though, a lot of people around the world are struggling to get out of it. Overspending is often the culprit the drags individuals to the very deep hole of bankruptcy.

Debt grabbed you by the neck

It may be the tough times and circumstances but it can also be your impulsive buying that led you to a ton of debt. There could have been a medical emergency in the family, someone lost his or her job, and a long list of situations that pushes us against the wall. No matter how debt pushes you against the wall, you need to fight back and get out of it.

Just did not see debt coming

Wrong decision coming one after another in terms of finances means a debt rising in the mountain at your back without you knowing it. It will be too late before you notice it.

Ways to avoid bankruptcy

Before applying for bankruptcy, try the following steps first:

1. Just the necessities ? Remember the clich? of your wants versus your needs? That is really it. All you really need is food, water, clothes, and a roof above your head. Before buying anything, go back to this basic question.
2. Pay your House and your car ? Make sure you pay your house first before any other debt. Then pay your car loan. This ensures that you have somewhere to stay and a means of moving around.
3. Sell them off ? If you have a lot of stuff that you do not need and do not use, sell them off. This will allow you to go back to what is vital and have some extra money to pay off more debt.

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