Financial Stability: Building a Better Future After a Chapter 7 in Lawrence, KS

by | Aug 9, 2016 | Lawyers

Many people are only a few paychecks away from financial disaster. All it takes is a layoff or an extended illness to become so deeply in debt that there is no way out. Fortunately, an attorney determined the debtor was eligible for a Chapter 7 in Lawrence KS. Now that all the work is done and the court has discharged the remaining debt, it’s time for a new start. Here are some tips that will pave the way to a brighter financial future.

Living Below Means

Financial security involves living within a budget. As the debtor learned while attending the court-ordered financial management classes, the key is to structure the budget so some money can go into savings each month. This does mean living below means or, in other words, not spending every penny that is made. While it may be hard at times to resist the urge to splurge, keep those treats few and far between until there are at least six months of living expenses tucked away in the bank.

Don’t Create New Unsecured Debt

Many people find that, after going through a Chapter 7 in Lawrence KS, many credit card companies are happy to provide them with new credit cards. That’s because those companies know that the debtor can’t file again for a number of years. While a single credit card is a good way to begin rebuilding a decent credit rating, be smart about choosing the right offer. Even then, pay off the balance every month and avoid accumulating interest.

Remember that debt is something to enter for necessities only. It’s fine to invest in a new car when keeping up the old one becomes too expensive. Choosing to buy a larger television on credit when the older one works just fine is a different matter.

Forget About Keeping Up With the Joneses

Many people get into debt because they want to have the nicest car on the block or wear better clothing than everyone else. They forget that many of the people they are emulating are walking around with a mountain of debt-;something that is not worth imitating. Learn to purchase based on needs and reasonable wants, and don’t worry about what others think.

If bankruptcy seems like the only way, contact Business Name today. Doing so will be the first step toward a more secure financial future.

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