5 Questions to Ask When You Can’t Pay Your Bills | Denver Bankruptcy Lawyer - Jon B. Clarke, P.C.
Now and again, money can get tight. When, however, these financially challenging times are not temporary, asking yourself the following questions can help you figure out what your options are for getting out of debt and improving your financial situation.
1 – Can I cut back my spending?
When struggling to pay your bills, ask yourself these questions to figure out what your best fix is, a Denver bankruptcy lawyer explains.
When debt is weighing you down, consider whether cutting back on any of your current expenses (to free up more money to pay down your debts) is possible. You may need to develop a budget, looking at your credit card purchases, bank statements, etc. for the past few months to really get a handle on your spending habits.
2 – Is my job/income secure?
If you are employed, think about whether your job is a reliable source of income or whether it’s more temporary (or the income varies more from month to month). If you cannot rely on an income and you are shouldering a lot of debt, budgeting and cutting back your spending probably won’t be sufficient.
Instead, you may need to start thinking about possible debt relief options before your debt snowballs further.
3 – Is there a possibility of a financial windfall coming my way soon?
Are you getting a work bonus, a commission check, a tax refund or even an inheritance soon? If such a financial windfall is not imminent, then, again, it’s time to turn to professionals for some help getting out of debt. If you don’t and you don’t have a steady income, the situation is likely to get worse, possibly even leading to foreclosures, wage garnishments, etc.
4 – Will any of my creditors cut me a little slack for a bit?
Have you tried contacting your creditors to see if they will let you skip one payment, work out a payment plan or even agree to a settlement for a fraction of the total debt?
If not, this can be an important thing to do, as some creditors will be willing to work with you (because they would rather get something than nothing).
5 – Have I considered filing for bankruptcy?
For people who are overwhelmed with debt and can’t rely on their income (or have little to no money to put towards their debt), filing for bankruptcy may be the best solution to their debt problems.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact trusted Denver Bankruptcy Lawyer Jon B. Clarke for experienced help pursuing your best debt relief option.