Finance News » Finance http://www.myfinancetools.com Daily updates Sat, 21 Aug 2010 05:44:49 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 How To Avoid Bankruptcy http://www.myfinancetools.com/how-to-avoid-bankruptcy http://www.myfinancetools.com/how-to-avoid-bankruptcy#comments Wed, 17 Jun 2009 07:56:19 +0000 admin http://www.myfinancetools.com/?p=21 bankruptcy2Amidst the present crisis in world finance, it does not come as a total surprise that more and more people are getting into serious debt.  There are many reasons why people suffer financial difficulties; most of it may even be of their own doing.  Nevertheless, it is important to keep one’s head above water and ensure that you do not run your finances into the ground that may result to filing for bankruptcy.

Here are some useful tips on how to avoid bankruptcy:

1.      Steer clear from too much credit card debt.  Among the top reasons why people go into bankruptcy is because of their enormous credit card debt.  The average family has at least 8 credit cards and every single one of these cards is either maxed out or over the credit limit.  Limit your credit card debt to only 5-10% of your monthly income.

2.      Prioritize your expenses- Do not spend unless you absolutely have to.  Stay away from malls and shops in order to prevent yourself from spending too much and unnecessarily.

3.      Keep yourself employed.  People without any job or source of income are most likely to go into bankruptcy than those who have stable work and salary.  If at all possible, get a second job in order to have more income to cover all your expenditures.

4.      Do not take on any loans.  If you feel that your finances are not in a very good condition, do not apply for any loan whatsoever.  This will only burden you financially and can lead to bankruptcy in a very short time.

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