3 Strategies to Avoid the Debt Trap

With how convenient it is to spend money in today’s world, it’s no wonder why so many people are in debt. Credit card debt is steadily climbing, especially as payment options are becoming more convenient and effortless. No one ever wants to talk to Texas bankruptcy lawyers about their financial situation, but it’s becoming more common every day. The good news is with a little strategic planning and discipline, you can be well on your way to avoiding the dreaded debt trap. Here are three effective strategies to consider.

Set A Reasonable Budget

Everyone’s budget looks differently, since we all have different levels of income, financial obligations and lifestyles. But even if you have a lifestyle of free spending, setting a budget can give you a limit to look at, and most importantly, pause your spending when you reach the limit. Try to set aside a certain percentage of your income to pay for the necessities in your life, a certain percentage toward saving for your future and the remainder for having fun. It may take few months to determine what is reasonable, so allow yourself some flexibility at first so you don’t find yourself frustrated.

Shop Smarter And Spend Frugally

Any debt defense attorney in Houston will suggest making slight alterations in the way you spend money, especially if you are working toward goals. You may have a goal of buying a larger home, retiring early or other long-term aspirations. These can be achieved by shopping for used instead of new items, not eating out as much, searching for coupons, comparing prices and more. The more frugally you spend your money, the easier it will be to get into the habit of saving and avoiding the debt trap.

Plan For Emergencies

One of the most common reasons why people have to file for Chapter 7 bankruptcy is because they don’t have enough money in their emergency fund. Medical emergencies can especially bury an individual or a family, so setting aside some money every month to plan for the unexpected can help you get through difficult situations a little easier. You never know when an emergency is going to occur, so always being prepared as much as you can financially can give you peace of mind.

Bryeans & Garcia, PLLC are Texas bankruptcy lawyers, but we also help our clients avoid having to file Chapter 7 bankruptcy if it’s avoidable. We will always look at the big picture of every client’s situation and help them determine the best options for them in both the short-term and long-term. And we can also assist with basic strategic planning to help you avoid the debt trap again in the future. Never hesitate to contact us at our Houston of Ft. Worth offices if you’re struggling with debt and need some advice.