Bankruptcy is a topic that people try to avoid discussing. Not only is it a sensitive area of interest, it can also be very stressful and worrisome. Bankruptcy may be easy to fall into, but there are steps you can take to help yourself avoid it.
Debt Free Australia shares their top four tips for managing your finances if you believe you are facing bankruptcy:
1. Negotiate Your Debts
Contact your creditors and see if a negotiation can be reached. Perhaps a payment plan is a viable option? Most credit institutions have a hardship department that you can contact to ask for help.
2. Value Your Assets
Reconsider your assets and quantify their value. Material things can be replaced, however, your debts will linger and bring negative consequences.
3. Ask for Help
Set your pride aside and reach out for help, either from friends or family. If you are on the brink of bankruptcy, it would not be wise to borrow any more money from creditors.
4. Re-evaluate Your Situation
Ask yourself hard hitting questions and confront yourself on your financial situation. Distinguish between what you want and what you need, and assess what you can and can not afford before making a purchase. Avoid unnecessary purchases and save money that can go towards repaying your debts.
If you feel as though these tips are not enough to help with your financial situation, contact Debt Free Australia today for expert advice. There may be other courses of action you can take to help you avoid bankruptcy.
Our advice line operates 24 hours a day, 7 days a week. Call us on 1800 462 767 for a free evaluation of your financial situation.