Business & Finance Finance

What are the essential money saving tips before and after declaring bankruptcy?

Millions of people in the US are filing bankruptcy after the colossal financial meltdown. They default on their payments and their extravagant lifestyle has exhausted their savings. Most of the people consider that filing bankruptcy can help them to get out of debt. But these debt stricken consumers might be aware that huge expenses are involved in filing bankruptcy petition. Therefore, you need to save money before filing bankruptcy to pay off the court fee charges.

Your credit report blemishes when you file bankruptcy therefore you need to save more money so that you make your payment on time this will help to rebuild your credit. Here are a few tips that you can employ that will help to secure your financial future.

1. Put a portion of your income in the savings account then it will help in time crisis. If you have a savings account then you can avoid taking out loan in time of financial emergency. Make sure that you put aside a particular amount in the savings account each month. When you get your paycheck ensure that you deposit a particular sum in the account. Therefore, you can avoid spending this money unnecessarily. Your savings account will force you to deposit the amount in the savings account before your spend it.

2. Avoid splurging your money on branded clothes, shoes and bags. Avoid getting designer outfits rather look for affordable clothes. If you have clothes then avoid buying new stuffs. Use this money paying off the court fee and lawyer's hiring fee. You can review your budget to find where your money is draining out. You can restructure your budget plan if you are unable to save money. Make sure that you highlight the things that are necessary for daily use. The items that you need for luxury can be at the end of the budgeting list.

3. When you file your bankruptcy petition your lawyer will ask you to avoid using credit card. If you keep on using the card then you might complicate your financial situation. When you are working on discharging your debts avoid applying for new cards. Keep your card for emergency use even after filing bankruptcy. Credit cards can tempt your and make your life miserable. It will be difficult to come out from the vicious cycle of debt when you frequently use your credit card.

4. Make sure that you get things from departmental store that offers discounts. Try to avail the coupons that you get as it can help you save considerable amount of money. Whenever you plan to visit the departmental store ensure that you buy things in bulk as it will help you get discounts. You can store things in the refrigerators so you can get things in bulk.

5. Try to do things yourself and avoid hiring a nanny for your child. Try to look after your own baby. If you have recently hired a gardener then tell him that you do not require him any more. This will help you save considerable amount of money when you do the work yourself.

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