The first stage is to determine whether you can actually pay off your debts and achieve financial stability. It makes no sense to spend years paying bills and servicing a debt burden you will never be able to repay. It may make sense to reduce your losses and immediately begin rebuilding your life.
To evaluate this, take the time to create a budget. Review and document your spending and expenses. Include quarterly or annual expenses such as insurance premiums and vehicle license plate fees. Don't use guesswork to complete this exercise. Use your invoices and statements to ensure that your calculations are accurate. Examine the amount of """"frivolous"""" expenditure you engage in after you have established all budget items. Over the course of a month, do your $1.00 iTunes purchases amount to hundreds of dollars? Are you attending ladies night every week? Do you truly require new clothing every six weeks? Determine how much of this expenditure can be eliminated. How long can you survive on your current diet? You should be prepared to survive on this budget for at least two to five years.
Compare your budget with your income to determine how much money you would have left over each month. By paying this additional amount toward your debt, will you be debt-free or close to debt-free by the end of your chosen timeframe? Keep in mind that making only the minimum payment on credit cards will keep you in debt for a very long time; the game is contrived. To advance, you must pay more than the minimal required payment.
If living on a limited budget will get you out of debt or near to it, then you should do it! If you cannot repay your debts, it makes perfect sense to consult with a bankruptcy attorney. A lawyer can determine whether you require Chapter 7 or Chapter 13 and will guide you through the process. Although it is not anyone's first option, bankruptcy allows you to eliminate your debt and begin anew financially and in life. Everyone is entitled to a second chance, so go ahead and accept yours.""
" - https://www.affordablecebu.com/
