[COLUMN] Can you become debt-free without filing bankruptcy?

Debt is a common problem that a lot of people struggle with and many people want to know how they can become debt-free.  Of course, in today’s society, you can’t afford to spend cash on everything and sometimes you have to use a credit card or get a loan.  The problem is that when those debts spiral out of control, it becomes very difficult to get out of the debt trap.

If you have more debts than you can handle, fortunately, we have bankruptcy laws in this country that can provide relief.  But since bankruptcy is often a last resort, you may want to see if you have other options to fix your debt situation on your own.  In some cases, it is possible to pay off debt even without adding income. It will take time and discipline but if you are committed to living a life without any debt, you may still be able to avoid bankruptcy.

A lot of people find reducing their debts too difficult and so they don’t even start trying. They begin to look for easy ways or aim at solutions that end up getting them in even deeper trouble. In order to be successful, you need to work towards a specific plan of attack. If you stick to the plan no matter what happens, you can become debt-free. Here are a few simple steps that you can take towards freeing yourself from the debt trap.

Step One: No more debt. If you are trying to reduce your level of debt, then it’s vitally important to stop adding to your balances at once. It is impossible to borrow your way out of debt. If you have bills that need to be paid or things that you want to buy, you will have to find other ways to pay for them.  Don’t use any more credit.

Step Two: Reduce Expenses. If things are tough for you financially at this time, you need to begin tightening your belt. Work on reducing your largest expenses. Find ways to reduce how much you pay each month on your repayments. Catch up any past due payments so those penalties and late charges stop. Trim your budget so that you are able to cover nothing more than your basic living expenses.  Determine what expenses can be eliminated immediately. If it’s an expense that you can live without, get rid of it right away.

Step Three:  Prioritize.  The next time you’re tempted to spend money on an impulse item, ask yourself if that same money could go towards getting rid of a debt somewhere else. When your next paycheck arrives, allocate your money carefully towards paying your bills and expenses first. Whatever is left is yours to spend on other things.

If your debt situation has gotten so out of control and everything you’ve done on your own hasn’t worked up to this point, I would like to help you find the right solution. For a free consultation, call Toll-Free 1-866-477-7772.

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NOTE: Due to COVID-19 pandemic, I am offering free consultations BY PHONE to anyone who needs help in dealing with their debt problems.

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped over 5,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call RJB Law Offices at TOLL FREE  1-866-477-7772.

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