After bankruptcy you will notice your stress levels are much lower and your life is much less chaotic, thanks to your bankruptcy attorney. You no longer have to avoid harassing phone calls and letters from creditors, and your life is peaceful once again. Without learning to budget and use sound financial management this peace may not last long though, so effective budgeting after bankruptcy is crucial to avoid any future problems with debt. There are some helpful tips that can help you stay on the right track now that you have a fresh financial start by simplifying your financial situation and making your life less complicated.
Consolidate Your Financial Accounts
If you have numerous accounts this complexity can often lead to errors and mistakes that may have a financial cost. A bankruptcy attorney may offer this tip and others when your case is discharged to help you stay out of debt. Look at all of your accounts, and consolidate all the accounts of each type into a single account where you get the maximum benefits and lowest costs. This means one checking account, one savings account, etc…
Use Direct Deposit
Any experienced bankruptcy attorney can explain that direct deposit of your paycheck will lead to more savings and lower debt. If you do not have the cash on you then you are less likely to spend it on a whim. This also protects you against losing the money needed for the monthly bills or having the funds stolen.
Use Automatic Bill Pay
Automatic bill pay is convenient, easy, and can help you save money and avoid debt. A simple mouse click allows you to transfer payments instantly, and there are no stamps or other supplies needed.
Sign Up For Overdraft Protection
Simple budgeting is about minimizing your expenses, but one area where this may be penny wise and pound foolish is overdraft protection. Some banks offer this protection for a small fee, and it can avoid large expenses if an error occurs and you do become overdrawn. Discuss overdraft protection with your bankruptcy attorney and financial institution to see if this option is right in your case.
Don’t Forget To Budget For Entertainment
Make sure not to make your budget too strict. Entertainment should be budgeted on a weekly or monthly basis and you should not eliminate this spending category. Everyone needs entertainment once in a while and this should be included in every budget. Try to choose forms of entertainment that are low cost though, such as renting a movie instead of taking the entire family to the theater.
Be Realistic In Your Budget
Make sure that your budget is realistic for your income, debts, and situation. If you have questions your Ohio bankruptcy attorney can provide resources and referrals to organizations and individuals that can help you with your budgeting needs.
The bankruptcy attorneys at Richard West Law can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.