Paying your way out of debt is often the first form of debt relief that individuals attempt before declaring bankruptcy. While reducing your expenses can seem like a dauntless task, it can be easy if approached in a piece-meal manner. Here are some tips that can save you money that you can then use to pay down your credit card or other debts. IMPORTANT NOTE: Make sure that you consult a Dayton Bankruptcy attorney before significantly paying down any debts if you are planning on filing Chapter 7 or chapter 13 bankruptcy in Ohio. If you file bankruptcy directly after paying large sums to anyone creditor, the bankruptcy trustee may recall the money and undo all your efforts.
Reduce Your Food Spending
The average family spends between $700-$800 dollars per month on food according to the USDA. Because this is such a large and necessary expenditure, it’s a wonderful place to start in cutting down on your monthly expenses. As in all budgeting, making a set plan of what groceries you need via a list and sticking to it will help shave off some extra cash. Additionally, taking your lunch, reusing leftovers, utilizing coupons, and making your coffee at home are all good ways to cut back on your food expenditures.
Lower Your Housing Costs
Looking at lowering your cost of living? Start by reviewing your mortgage agreement and home owner’s insurance and how much you pay for each. You could drastically reduce your monthly mortgage payment if you can refinance at a lower interest rate. Additionally, shop around for home owner’s insurance if you haven’t done so in a few years. You may be able to find the exact same coverage with a cheaper monthly premium. If you are renting, two areas to consider that ca
Lower Health Costs
Hospitals and Doctor’s offices are notorious for making mistakes in billing. You may be able to save money by applying extra scrutiny to each medical bill you receive. This involves asking for a line itemized bill in some instances and asking about any charges that are duplicate or seem out of the ordinary.
Reduce Technology Costs
If you being to add up all the small fees we pay such as Netflix subscriptions, Cable, Internet, Cell phone, software services, etc. the costs can add up quickly. You can either try cutting out cable completely or contact your service provider to find out about bundle deals that can reduce your monthly cable bill. Shop around for cell phone plans as well. Many times you can find carriers willing to waive fees and offer deals to switch to their service.
Cut Back on Other Luxuries
Do you need to keep a maid, gardener, and personal trainer or can you start cleaning your own home, cutting your own grass, and finding a workout buddy to keep you motivated? Ask yourself about the other luxuries you enjoy that you might be able to temporarily or permanently eliminate to save cash.
Paying Down Debt
Good budgeting is at the heart of reducing or eliminating debt. You can start to reduce debt by getting a general overview of what you have coming in and going out each month. Once you have a plan and budget together, the most difficult portion begins: sticking to your budget and using the excess proceeds to pay down debt. Many Chapter 13 bankruptcy programs take 36 to 60 months to complete and so you shouldn’t expect a huge change right away, but gradually over time. If, after putting together your plan, you don’t expect to pay off all your debts within 5 years, you should seriously consider bankruptcy as a debt relief option. Not only will declaring bankruptcy allow you to create a monthly budget, but it can also delete credit card, medical debt, and other types of unsecured debt from your balance and help you gain a firm financial footing once again.