To declare bankruptcy hastily is to declare checkmate on your financial balance before even trying to find solutions to avoid bankruptcy.
It’s good to remember that bankruptcy is a last resort option. While it is a solution that puts an end to your debts and the harassment of your creditors, know that bankruptcy isn’t without any consequence. There are a lot of efficient methods to retrieve your financial balance … and avoid bankruptcy.
If you wish to avoid bankruptcy and get your financial balance under control, here are our best strategies to achieve it.
1. Being Aware of the Limits of Our Own Budget to Avoid Bankruptcy
Having credit is great, but never forget that the money you borrow will have to be reimbursed, and most of the time with interests. One spontaneous purchase here and there can easily be covered by your credit, but only if you consider the limits of your budget.
If you are the type that spends without counting, you are at heavy risk to be indebted quite rapidly. A little $20 here, and another $40 there will equate to a monthly bill that’s higher than you can afford.
In order to get control of your finances back, you will have to learn how to budget and how to respect the limits of your budget. This will be the first step to recovering your financial balance and to successfully avoid bankruptcy.
2. Open a Savings Account
RRSP’s, TSFA’s, as well as any other similar type of accounts are not a necessity when you aim to straighten your financial portrait. You also do not need a well-furnished bank account to be able to save money.
Most professional financial advisors will tell you that you only need as little as $20 a week in order to save and avoid bankruptcy. Do not hesitate to contact your financial advisor to discover the savings options offered by your financial institution.
In case of need, certain saving products can also allow you to pull those funds out any moment, easily.
3. Do Not Hesitate to Ask for Help In Order to Avoid Bankruptcy
To avoid bankruptcy when we’re already drowning in debts or on the threshold of losing everything isn’t an easy feat. This is why we’ll always recommend seeking help with professional financial advisors. Financial advisors are there to help you straighten yourself, financially.
Whether you are a $1000 indebted or $250,000 indebted, they will be able to offer you solutions that are adapted to your personal situation. If you wish to avoid bankruptcy, the best way to do it is to get the tools necessary to build your cushion.
Without a financial cushion, you will not be able to avoid bankruptcy when the moment your debts surpass your ability to pay arrives. With a cushion, you may be able to access other solutions, such as debt consolidation or a consumer proposal.
For any questions or commentary on the methods to avoid bankruptcy, do not hesitate to contact us today. One of our experienced financial advisors will gladly take the call and attempt to answer all of your questions.