2 Ways To Improve Your Financial Situation And Get Out Of Debt
Do you owe money to different creditors? If the debt you owe is starting to get out of control and you cannot seem to make all of the necessary payments each month, you may want to know how you can get out of debt faster with the least amount of stress possible. There are a few options that could help you with your goal of reaching financial freedom.
1. Downsize to Earn and Save Cash
If you have a lot of valuable items sitting around inside the home, it may be time to part with some of them. While it may not be the most ideal situation, getting rid of the valuable items you are not using is a great way to earn extra cash. You can sell some of these items on eBay or Craigslist. You could also have a garage sale to quickly earn as much money as possible for the stuff you no longer need or want.
Aside from getting rid of some of your belongings, another way to downsize is to move to a cheaper apartment. While this is not an option for homeowners, you could potentially save hundreds each month by choosing to live in an apartment where the rent is less expensive. You may not have all the same amenities as you did in the more expensive apartment, but if it helps you save money and get out of debt faster, it is certainly worth it.
2. File Chapter 7 Bankruptcy
If you do not have much to sell and are unable to downsize to a smaller and more affordable apartment to save money, you may feel like there is nothing else you can do to get out of debt. However, filing for Chapter 7 bankruptcy is an option. During this process, you would not have to make payments to creditors or deal with a payment plan. The money you owe would be erased, but there is a bit of a catch. Some of your possessions may be sold as a way to pay back a good portion of the money you owe to different creditors. These possessions include vehicles and any extra properties you have in your name.
The filing process may seem complicated, but a bankruptcy attorney would be able to explain everything to you in detail to make sure you understand it all. You will need to provide different information when attempting to file bankruptcy, such as proof of income, list of creditors as well as the amount of debt owed and any properties you currently own. It is important to be honest about your income and the number of properties you own when completing the filing process.
For some people, it may seem impossible to get out of debt. If you feel this way, it is important to know that options do exist to help you with this financial burden. Simply consider which option will work best for you based on your current financial situation as well as the amount of debt you owe.
For more information, contact Shoemaker & Dart P.S. Inc or a similar firm.