Ways to Avoid Common Financial Pitfalls
In many instances, the factors that lead to bankruptcy are unpredictable. You suffer a personal injury or lose your job. There are, however, many common factors that contribute to the need to seek protection from creditors. Here are a few simple measures you can employ to reduce the likelihood that you’ll face unmanageable debt.
Make Certain You Have Health Insurance
Medical debt is the single biggest cause of bankruptcy filings in the United States. The good news is that medical debt is almost universally unsecured debt, which means it can be discharged in bankruptcy; still, the process is extremely stressful. Most people have health insurance through their employment, but those who aren’t working have access to health insurance through the Health Care Marketplace. When money’s tight, give priority to paying your health insurance premiums. Even though healthcare providers typically write off some part of the costs of care, you may still end up owing thousands of dollars that could take years to pay off.
Pay for All Necessities with Income
Avoid using a credit card or borrowing money to pay for food, shelter, gasoline, or clothing. You can’t borrow your way out of debt. As a best-case scenario, you’re just shifting where the money is owed. As a worst-case scenario, you’re only adding more debt. Often, too, when you’re financially struggling, the only loans available to you are at high interest rates, so you’ll be digging the hole deeper.
Make Your Transportation a Priority
Unless you can work from home, you need a way to get to and from a job. If you don’t have a reliable form of transportation, you won’t be able to work. Make your car payment on time or set aside the money needed for public transportation.
Contact an Experienced Rockwall, Texas, Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083 for a private meeting. I handle personal bankruptcy filings throughout Rockwall County, Texas, including the cities of Rockwall, Heath, Greenville, Lavon, Wylie, Mesquite, and Rowlett.
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