Your Undefeatable Guards Against Personal Bankruptcy.

Your Undefeatable Guards Against Personal Bankruptcy.

The prevalence of bankruptcy today certainly does not result from insufficient income. Neither do high cost of living explains why so many people are fatally attracted to filing for bankruptcy. Therefore, more money would not solve this problem that have engulf
our society in an unprecedented scale.

What though can be done to avoid this chapter that is better left unread? What precaution can help to stem the tide?

Resist the urge toward instant gratification

Instant gratification can be defined as the attitude of many today which is gear toward having all you want now irrespective of whether you have the means or not. This in part account for the reason many are bankruptcy today. They want every things at once and its easy! “Good or bad credit record, you are qualified” has become the slogan of many finance companies. A young husband sums his experience this way: TV payment per month is just $52, the CVR further increase the payment to $78. The furniture though was a bit expensive it monthly installment is $287, the drapes and the carpet only add $46.5 to the sum. He had it that way just simple but it exhaust his paycheck. There was no provision for contingencies.

Learn simple resistance

As you enter through the banks’ entrance you are immediately greeted bombarded with army of product promising a more secure and comfortable life. Loans that are targeted at you, overdrafts, salary advance, and so on. The list is endless. On the road and around your neighborhood the situation remains the same. There is no place to hide so to speak.

As you enter yours home and turn on the television, you are equally greeted with most penetrating pictures and messages. I bet you there is no end to scientific advancements and innovations of this age. Some decades ago, it was desktop computer, then laptop. While many in developing lands are struggling to get a laptop, it has been push aside by notebook in the advanced world. Some years back cameras that make use of negatives films that allow for multiple printing of single exposure was fashionable. Today, the rush is towards digital camera that defines images in mega pixels. You cant have them all, thus its only wise to simply say no, so that you do spend yourself to bankruptcy.

Debt management

The basic tenet of debt management is: do not buy what you don’t need and cannot afford. Ability to reject debt is central to effective debt management. Learn to make prudent use of your resources irrespective of whether its much or little. If many countries of the world are heavily indebted today due to poor management policies, it only stand to reason that individual learn to manage their finance well to avoid personal bankruptcy.

Do not borrow for luxury items

In addition to items that are article of ostentation, items that are sometimes considered
Necessity may at another time become luxury. Example is someone who has a television set in his living room may desire another one in his bedroom. What if you already have a laptop, but still want a notebook? It would tantamount to financial suicide to go borrowing to buy these items. Luxuries are items we can do without.

Do no take vacation trip unless you can afford to pay before you go.

Vacation trips are very necessary in view of today’ s frenzied work environment. It can contribute significantly to productivity, good health, and happiness. However, vacation is not like time. While you cannot save your time for future use, you can postpone your vacation until you are capable of financing it. Therefore, if you can’t afford the cost do not go. Vacation is better enjoy when you paid for it and don’t have debt waiting behind.

Avoid impulse buying

Do not but simply because is half the original price. It’s not a bargain for you, if you cannot afford it. Your buying decision should be dictated by your well-established budget. If you don’t have a budget yet try and establish one. A budget is a written document detailing all your expected revenue over a period of time and how you wish to expand them. For an individual the period is usually monthly. When you have established it, make sure your follow it religiously. Do not buy base on emotion or spurs-of-the-moment. It is important to note that associates can impact strongly on you buying decision. Therefore be focus and don’t allow others to dictate for you.