Many of us today are in some kind of debt, surviving on credit and spending our money on paying things off rather than on living or creating our rich life. It’s not an easy position to be in and it can feel overwhelming. Even if people aren’t living to the limit on their credit cards, they’re living in houses that they bought on credit, and they’re driving cars that they bought on credit, and keeping their businesses afloat with credit.
Although we know that relying on credit is not sustainable, sometimes we find ourselves in positions where that is the only option. Life happens and if you find yourself in a season of financial insecurity where you’re diving deeper and deeper into debt, we promise that it can (and will) get better. There are several options available such as credit consolidation and debt counseling. If you have exhausted all options and still feel stuck, you may want to consider filing for bankruptcy. This decision should not be treated lightly and is not be a good fit for everyone. However, it is an option that has given many folks a fresh start on their path to financial security and eventually, prosperity.
According to the the Administrative Office of the U.S. Courts, annual bankruptcy filings totaled 773,361 for the year June 2018-June 2019, down 0.3 percent compared to the previous the 12-month period.
When filing for credit card bankruptcy, or other forms of bankruptcy, some choose to work with a bankruptcy lawyer to navigate the process. It will take time to remove a bankruptcy from your credit report, but it can be worth the sacrifice if it gives you the peace of mind that you need to get back on solid ground.
After filing for bankruptcy, you may feel as if you failed financially. But there is no shame in taking this step. As best you can, try to see it as a step towards a new life. A life where debt doesn't hang on your shoulders as you work to improve your finances. Here are some ways you can enhance your life and elevate your financial situation after a wave of debt:
Downsize Your Lifestyle. You’ve just come out of the other side of a life on credit so now it’s time to reduce your expenses. Begin with eliminating your subscription services and exchanging your car for one within your cash budget, not your credit budget. No more finance, no more extras for a while. Not until you learn to live within your cash means, not your credit means.
Shop Around For Utilities. You aren’t in debt anymore and now the work begins to stay out of it. Shopping around for your utilities is going to ensure that you get the best price, and you have less to pay out for when you do it. This will help you to free up your budget and having savings.
Learn A Credit-Free Life. You may have some false starts here, but it’s time to let go of credit and the idea of living with it. You may have booked vacations and trips with it before, but now life is different and living credit-free does take some time. Using credit feels great in the moment, but the hangover from the lingering debt does not. The more credit you use, the more debt you have. Practice a cash-only lifestyle and you will soon be on the path to prosperity.
About Money & Mimosas: Money & Mimosas was started as a passion project by Danetha, a former NFL cheerleader turned entrepreneur and financial journalist. After a brunch conversation with girlfriends, Danetha was inspired to launch a blog to explore her journey of becoming rich, sexy and confident.