Having debt means you probably have something like student loans, a mortgage on a house, a car payment, or a credit card payment. These are all different forms of debt that are safe to have, as long as they are being managed properly and paid on time. When paying any of these becomes an issue, it is no longer good debt. When you cannot properly manage what you have loaned, you risk putting yourself in financial trouble, which will eventually lead you to a Baltimore bankruptcy lawyer. In this article, we will discuss some of the easiest ways to keep your good debt from becoming bad debt.
Organization
One of the easiest ways to keep your good debt in check is to stay organized. There are so many different ways to stay organized through the technology that we have today. If you are a paper person, consider keeping a calendar on your desk at work with the due dates of all your major bills. Seeing these everyday will not only give you a reminder of when you need to pay different bills, but it will also keep you on track with spending. If you see that you have a big credit card bill coming that day, you might need to lessen your big daily lunches for a while. This is a simple brain trick that will keep you from spending too much.
If you are someone who embraces technology, there are so many ways you can do to stay on track with finances. With all of the available apps these days to tell you exactly when to spend money and when not to, it is virtually impossible to ignore them. You can set any number of these apps not only to remind you when to pay bills but you can also program them to tell you when you are spending too much in one area. Most financial apps give you the option to link your credit cards which allows them to keep track of exactly how much money you are spending and on what. If you set limits for yourself, your device will notify you when you have gone out for coffee one too many days that week or month. This is an awesome way to keep yourself on track without any of the responsibility on your shoulders.
Emergency Fund
One of the easiest ways to cover yourself is to have an emergency fund. Sometimes it isn't as important to pay off your debt as fast as you can if you are working to build up an emergency fund. This fund can come in handy in case of unexpected big expenses. No one can predict which direction their life will turn to and more often than not, we are thrown a curve ball. Just when you think you have all of your bases covered, something unexpected will likely occur and force you to pay a big chunk of the money that was supposed to go to your loans. In this case, having an emergency fund will save you from missing a payment on anything.
These are just two easy ways to stay above water when it comes to finances. No one wants to be caught without a backup plan. The last option would be to contact a reputable Baltimore bankruptcy lawyer. If you should feel yourself in need of discussing finances further, consider contacting an experienced bankruptcy lawyer. Even if you aren't quite there yet, it will likely give you some insight on where you are exactly, where you should be, and what you can do to avoid ruining your life completely.
Source : articlesbase.com
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