Because of today's world financial crisis bankruptcy has become the norm. It's not something people want to do it's something they have to do. But, if you can learn to make every penny count then you could possibly avoid bankruptcy. Let's start with some facts about bankruptcy. For the fiscal year ended June, 2008, just shy of 1,000,000 people filed for bankruptcy in this country. Wages during the last 10 years have remained fairly flat while credit card debt has soared. In 2008 alone $27 billion dollars in credit card debt was written off through bankruptcy. In 1968 national credit card debt was $1.3 Million dollars. Forty years later in 2008 that credit card debt is now nearly $1 Trillion dollars. About 60% of consumers usually pay off their credit card debt each month. The other 40% paid the minimum payment or were late. So in 2007, the credit card companies received $18 billion dollars in penalty fees. Take steps now to avoid bankruptcy before it begins to materialize in your life. Do this by completely changing your lifestyle. With today's economy in shambles we must set an example for our children and others in the same situation. - Learn to buy and use only the things you need, things like food, gas and items for your children. Everything else is fluff. - Stop making Mr. Edison wealthier, turn of the lights when you leave a room and unplug anything and everything that you're not currently using. - When you need to run errands, consolidate your trips so you use less gas. - When making purchases stop and think whether this item is a luxury or a necessity. Nine times out of ten it's a luxury. - When seasons change, make sure you change your yard watering schedule - Don't let water run when you're not using it - Wash your own car - Clean your own house It's just like going on a diet. When you pass something in a store you like or want you're going to have to continue walking. If possible live on cash. If you're one of those people who buy things emotionally or compulsively then you're going to have to reinvent yourself. It's either something you need to live or its called fluff. Start to become aware of your utilities. This adds up to a lot of money during certain seasons. You can lower your bill by never leaving anything electrical running. Unplug all items not in use such as your toaster and lights rarely used. Gas and electric companies always raise but never lower their rates. You can avoid bankruptcy by cutting back on everything until you feel your debt has stabilized. That may take awhile but it's really time people started living within their means. Make a spreadsheet for 30 days and account for every dollar spent. When done you'll know exactly where your money goes each month. You probably have a lot more discretionary income than you thought. When you see your debt start to disappear, don't run out and celebrate with a credit card. Celebrate with cash. In fact, stop using credit cards altogether.
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