Times are Tough But Breaking Debt Habits Make it Easier

At Sunshine State Bankruptcy, we get questions all the time about personal finances. Along the way, many Americans started believing the fantasy, allowing our expenses to grow to match our income. Plus all the money we could borrow.

Borrow here, borrow there, but unfortunately, many people did borrow wisely. At Sunshine State Bankruptcy, we want to explain why these debt habits have been the kiss of death for many of our client’s:

Cars.: Buying a car involves borrowing. Unfortunately, many people look at the monthly payment as part of the equation. That’s not the starting point. Do you really want to hold a car for five years? Cars depreciate the moment you take them off the lot, they are actually worth less than what you purchased for them. You want to hold a car no longer than three years and unfortunately, that’s going to mean a higher monthly payment.

Homes: Many people end up purchasing homes at low monthly payments only to be followed by a huge balloon payment that increases their monthly mortgage payment about what they can realistically afford. Keep it simple, a thirty-year loan is good enough, if you can’t afford it, you need to rethink your decision to buy a house.

Shopping: We all love to shop, but unfortunately many people who just make minimum payments on their credit cards, have you seen that box in the right hand side of  your credit card statement, that will tell you how long it will take to pay off your credit card statement by making the minimum payment. Many of us will be long gone from this earth by the time that happens.

So, at Sunshine State Bankruptcy, we suggest that you go back to the basics:

  1. If you can’t afford it, don’t buy it.
  2. Be old fashion like your parents, save up to buy something before you purchase it or save in a larger down payment.
  3. Your income should always be greater than or equal to your expenses.

If your debt habits have gotten you and your family into trouble bankruptcy may be an option that will provide you with a  fresh financial start. Bankruptcy may not be right for everyone and each person’s situation is unique. You can learn more about the benefits of bankruptcy by contact Sunshine State Bankruptcy today. We have written the go to consumer guide that will answer many of your questions, you can order your free, no obligation copy by calling 7272584999. **Cite: New York Times: Business- July 2, 2011**