Bankruptcy is a nightmare for everybody around the world that can appear anytime. Nobody wants it happen in his or her chapter of life. Therefore, people have to prevent it when they start to feel that there is a financial problem or even before it comes.
- You should live within your income. Do not buy something that you know you cannot afford it. For example, if you want buy a house, you should calculate the mortgage payment and your ability to pay it even when your income decreases up to 25%. Moreover, for buying a car, you are better to re-think whether you need to have a new car or used car even if you have enough money.
- Sell your expensive properties that actually you do not really need it. When your saving is getting less and less, you can start to sell your high-price items that need pricy care or high taxes. As the result, your wallet will get thick and you can pay your credit or debt.
- Go to financial adviser to create a financial plan. You can ask them about financial problem that needs to be solved first and in what way you can deal with.
- Start to do saving habits. Put aside your income even for $10 or $15 every time you get your paycheck. Remember not to use your saving at least in emergency.