Not having enough money to pay your bills is usually a symptom of a bigger problem. Unfortunately, it can indicate a serious issue with your financial health. In many cases, something that begins as a minor problem making ends meet can spiral out of control. This is especially true for many lower and middle income families that are living paycheck to paycheck. Pulling a bit from savings here and there or forgoing a few expenses to make ends meet suddenly turns into a full-blown financial crisis if hit with a vehicle breakdown or unexpected medical bill.
Take an Honest Look at Your Financial Situation
Fortunately, there are ways you can improve your financial health, even when things seem hopeless. First, you need to begin with an assessment of your current financial situation. For some, things might seem worse than they actually are and by getting a clear picture of the situation, you’ll realize it will take just a few changes to clean up your financial situation. Unfortunately, for those who have been ignoring their financial hardships, things might be much worse than anticipated.
Create a Plan of Action
Once you understand your current predicament, you can create a plan of action. If there are any mistakes on your credit report, that’s where you should begin. Begin the dispute the mistakes and have them cleared from your credit history as soon as possible. Next, contact your creditors and explain your situation to them. Many will be willing to work with you to create a payment plan to help you get through your tough time. Their ultimate goal is to collect their money, so if they can give you a bit of wiggle room to accomplish that, it is to the advantage of both of you.
If creditors are unwilling to work with you or you are in too deep to arrange a plan at this point, you still have options. Personal bankruptcy can help you get your debt under control and restore your financial health. Bankruptcy is a process that can be somewhat complicated, so it is important you work with an experienced bankruptcy attorney who can explain your options and help you with the forms and filing. There are two types of personal bankruptcy and each has advantages and disadvantages, so make sure you understand which option is best for you before you begin.
Preventing financial woes before they spin out of control is always the better option, but in this day and age, it is not always possible. If you have questions about your financial situation or you need help restoring your financial health, contact the law office of Frank J. LaPerch, PC at 845.942.5500.