There is a misconception that bankruptcy is always due to irresponsible borrowing and spending. This is not always the case. People are often left without choice due to reasons that are not quite in their hands. This may include a disability due to an accident, death in the family, unforeseen health issue, loss in business or a divorce. While these misfortunes are not preventable or controllable, there is always room for preparation. While we may not have a calculator to help you avoid such worst case scenarios, we have many to help you build a financial cushion to avoid bankruptcy.
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However, let’s not forget that nothing would work unless you put your best efforts in avoiding the bankruptcy. There will be a lot of small changes you will have to incorporate in your lifestyle and they are sure to keep your financial ship on the safer tides. Let’s take a look what you need other than a calculator.
First thing that can help you from a financial distress is the finance itself. You need money to build your finance and that is why you should start by saving as much of it as you can. Cutting down your expenses is not only possible; it can be extremely easy as well. First of all, tame down on your impulse buying habits. Secondly, go for low cost alternative of products you really need.
Credit card is a kryptonite for your financial stability and strength, at least when you are nearing a distressful financial situation. If you will keep using the money you don’t have, you will never have the money to pay it back. Shunning all your cards at least for a time being is a good idea. Once you are sure of the financial security and stability you have, you can cherish the convenience of a credit card once again.
There is no point in stretching your home buying budget beyond what you afford. If you will borrow a house that is too big and too expensive for you, the chances are, you will end up without a home at all. Small houses not only have a smaller price tag, they are also less expensive to maintain. They utility bills are fairly lower and even the gardener wont charge much for mowing the lawn.
Follow these three simple rules, get yourself a calculator and you will find yourself in a much safer financial position even case of direst misfortune.