How do I know if my finances are too far gone?

On Behalf of | Feb 7, 2023 | personal bankruptcy |

When the creditor harassment starts, you know your bills are piling up. But, bankruptcy is probably not in the back of your mind yet. At some point, though, it will cross your mind, but at what point do you know if your finances are past the point of no return? Unfortunately, no blog can tell you that. That is something that only you, your family and your attorney can determine. This post will try to give you the tools that our Will County, Illinois, readers needed.

First tool, a budget

The first tool to understand whether your finances have gone too far is to see your finances. That is done through a budget. This is a spreadsheet that shows all of your assets, income, debts and expenses.

Next, get your budget in order

Cut your expenses to the bone to maximize your Will County, Illinois, debt servicing, and sell everything you do not need. Downsize where you can too. If you can downsize your car and home, do it. If you have extra computers, game systems, jewelry, etc., sell them. You can then use those funds to make additional payments on other debts, which will free up funds to make even more funds to make additional payments on debts. This is known as a debt snowball that can help pay off debts and reduce your interest payments quickly.

Up your income

The world is all about grind culture right now, and until you are out of debt, you should work hard too. You should have a second or third job, or at the very least, a couple of side hustles to help pay off debts. Remember, this debt paydown period will be terrible, but it is only temporary. However, if you are unsuccessful, or if these are not options, Will County, Illinois, Chapter 7 or 13 Bankruptcy are always options.