The credit effects of bankruptcy is so severe that people usually think twice before filing for it. However, there are desperate individuals who can no longer take the stress brought about by a debt ridden life. They are willing to throw caution in the wind and just get things over with. If this is your case, you need to consider other alternatives first.
Bankruptcy, despite the seemingly fast recovery, will not help you learn your lesson. Any problem that you can get out of easily will most likely be the same problem that you will encounter again. Not that we are being masochistic or anything but you do find it more motivating to stay out of debt if you know how hard it is to get out of.
That does not mean you need to suffer so debt stays away from you. There are debt relief options that you can avail but they will require a bit of income for you to be able to afford payments. Debt settlement and debt consolidation will require you to have an income to be able to pay off your debts without putting too much damage on your credit history.
In fact, if your credit score is a big concern of yours, debt management is an option that you can opt for. It will not reduce your debt so there will be hardly any negative reflection on your credit report but you will be able to make lower monthly payments. That is one of the primary goals of the debt counselor who will help you with your debts.
But then again, if you really want to avoid bankruptcy, you need to start growing your income first. If you debts have gone too far and your current income can no longer afford both basic expenses and debt payments, you need to increase your cash inflow.
There are many ways to do this without burning yourself out. Work from home jobs can be a great option because you still get to be close to the family even as you put in more hours earning some cash.
You can also explore online businesses that include ecommerce stores. The great thing about this business is your store stays open 24/7 without you worrying about its operations and the high overhead expenses. It is very far from the physical stores you see in the mall and much more profitable too – at least if you set it up the right way.
Another option to grow your income is by capitalizing on your skills and hobbies. This is a great way to earn without it really feeling like work at all. This includes writing, designing, crafting, carpentry, baking, cooking and even organizing. Some people even earn extra by being someone else’s personal shopper.
The list is endless and the possibility to grow your income is there – you just have to be really committed to it. You don’t have to file for bankruptcy immediately. Sometimes, all it really takes is a change of heart, a disciplined spending habit and the determination to pay off your credit obligations.