Trying to avoid bankruptcy
We’ve all played games like Monopoly, where going bankrupt due to loss of control can be annoying and frustrating. But can you imagine what real life bankruptcy is like? You don’t stand to lose little pieces of plastic off a game board when you go bankrupt in real life – you stand to lose your property, your car, and even your home.
Bankruptcy can lead to immense stress and can wipe out everything you have worked long and hard for in one fell swoop. Sadly, many people fall victim to bankruptcy unnecessarily, when in many cases taking earlier action could have helped them to avoid this course of action. Bankruptcy will not only wipe out your assets, but will also weigh heavy as a burden for many years to come.
Your bankruptcy status will be clearly logged on your credit report, which means that you will find it very difficult to get back on track with another home, car, or other items simply because you will no longer be deemed credit-worthy by most lenders. You may find the odd lender that will offer a loan, but this will usually be at an extortionate rate that will put you in an even worse situation.
The best thing to do to avoid the stress and long term complications associated with bankruptcy is take early action as soon as you realize that money problems are looming. Whether you do this through consolidating debts in order to reduce repayments and cut interest rates, or whether you opt to seek professional financial advice prior to taking action is up to you. However, you should certainly make some sort of move rather than letting the problems fester, as this is how things can get totally out of control, which can then end in bankruptcy.