When you can’t seem to make any headway on digging yourself out of debt and improving your financial situation, it may be time for a financial fresh start. While the paths to getting this fresh start will be different for different people (depending on their debt situation and some other factors), in general, the following are some of the most important steps to take to realize this goal.
Here’s What You Can Do When It’s Time to Overhaul Your Finances
1 – Get a clear understanding of your debt obligations.
Do you know how much your overall debt totals? Or which creditors you owe the most to? If not, the first step to overhauling your finances will be to figure this out. Knowing who your creditors are – as well as how much you owe each of them – can be essential to developing an effective plan for reducing your debt and improving your financial situation.
2 – Make a diligent effort to start rebuilding your credit.
It’s not uncommon for people who are buried in debt to also have less than stellar credit scores. If you are among these people, then another important thing to do as you overhaul your finances will be to focus on improving your credit.
While paying down your outstanding credit card debt and doing your best to not carry a balance from month to month can be important to this end, so too can be:
- Not missing any payments
- Not taking out any new lines of credit.
3 – Make investing your savings a priority.
An easy way to do this can be to get in the habit of transferring a certain amount of money into your savings each month. Better yet, set up an automatic transfer into your savings to ensure you are making regular investments (of course, make sure this won’t cause you to overdraft or be unable to make other bill payments).
4 – Focus on aggressively paying down your debt.
To do this, you need to be paying more than the minimum monthly payment on at least one of your debts (and, preferably, on the debts with the highest interest rates and balances first so you save the most money).
5 – Know when it’s time to get professional help and consider bankruptcy.
Although the above steps can help some people make great strides in improving their financial situation, in some cases, it just may not be possible for people to overhaul their finances on their own.
For instance, when divorce, the development of a new illness or even persisting unemployment occur, it may not be possible for people to dig themselves out of serious financial problems without the help of a professional.
So, if your debt has spiraled out of control, it’s time to contact a trusted bankruptcy attorney in Denver to learn more about your best debt relief options. In many cases, bankruptcy can help people eliminate their debt and obtain the financial fresh start they need and deserve.
Need a Bankruptcy Attorney in Denver? If So, Jon B. Clarke Can Help You …
If you are overwhelmed by seemingly insurmountable debt, contact our trusted bankruptcy attorney in Denver for experienced help pursuing your best debt relief option.
You can call our firm at (866) 916-3950 or email us using the contact form on this page. For specific answers pertaining to your situation, we encourage you to complete our Business or Consumer Debtor Analysis Form.
From our offices based in Denver, Castle Rock and Greenwood village, we take pride in providing people throughout the state of Colorado with the highest quality debt relief legal services.