When a person has overwhelming amounts of debt, it can seem almost impossible to get caught up. Fortunately, there are certain strategies that a person can employ that will help them attack their debt and potentially get caught up. As a St. Louis Bankruptcy Lawyer, there are several strategies a person can use, but one of the most common is called the Snowball Method. By using this method, a person could potentially be able to avoid bankruptcy.
The first thing a person needs to do is sit down and get an accurate view of their financial situation. This means sitting down and adding up all their monthly debts. This can include credit card debt, student loans, child support, car payment, rent or mortgage, etc. They then need to look at how much they are spending on entertainment. Things like movie tickets, dinners out, a daily cup of coffee from the local coffee shop, and more. By adding all of these items up and subtracting them from your monthly gross income, it can help give you an idea of how much money you have left over for disposable income.
A person then needs to find ways to cut back, specifically on those entertainment expenses. Obviously, a person needs to allow themselves some money for fun, but this needs to be kept as low as possible. For instance, a daily cup of coffee or eating out for lunch every day can add up very quickly. By brining your own coffee and bringing your lunch, you can save money without affecting your quality of life.
Once you have maximized the amount of disposable income you have, start attacking your smallest debt with as much income as possible without falling behind on other bills. This will allow you to pay off this smallest debt as quickly as possible. Not only will this give you a sense of satisfaction, it will give you extra disposable income each month. You can then roll that extra money into your next smallest debt and keep growing that snowball. As a St. Louis Bankruptcy Lawyer, this method has proven to be affective for many people.
No matter whether you choose to use this method or another, it is vital for a person to take an accurate look at their finances to get an idea of where exactly they are. It is easy to ignore debt problems, but they will not go away. If after taking stock of your financial situation you realize that there is simply no way for you to get caught up, it may be time to speak to a bankruptcy attorney to learn your options.
At Westbrook Law Group, we know how difficult it can be to be mired in debt. We work compassionately with our clients to end the stress that overwhelming debt can be. To learn more about how a St. Louis Bankruptcy Lawyer can help with your debt problems, contact Westbrook Law Group today for a free consultation.