Families across the U.S. are beginning to realize their “old budget” doesn’t do it anymore



With monthly distributions of the child tax credit having expired, and the increased cost of groceries, fuel, and utilities, families across the country are finding that their income no longer provides for their normal monthly expenses. A budget deficit is an uncomfortable position, especially when caring for children. The constant accumulation of debt to service a budget deficit is like sinking in quicksand.




Avoid Debt




A common mistake is that households will take on debt prior to reducing expenses, and it’s not until credit is no longer obtainable that the budget is carefully examined, however balancing a budget burdened by monthly payments to creditors is near impossible. Credit cards are nice for covering variable monthly expenses like groceries, fuel, and utilities but if the balance cannot be paid at the end of the month, then the budget is not sustainable.




Rather than borrowing to temporarily “make ends meet” consider what expenses can be reduced. Common cost cutting strategies include shopping for less expensive meals, eliminating subscriptions services like Netflix and Spotify, or finding entertaining activities to do at home instead of going out. The less you need, the easier it is to be happy.




Don’t worry about others’ possessions and income, appreciate your life. Media actively influences how we spend our time, money, and vote; whether it be an anchorman, a commercial, a movie, or Facebook; actively avoid this influence by focusing on family, friends, recreation, and serving your community.




Up to the Neck in Debt: Bankruptcy




When a household income does not provide for the household expenses many families will incur debt with hopes that relief in some form will present itself in the future. Hope is not a good strategy, but sometimes it’s the only strategy.




Bankruptcy can eliminate liability for monthly expenses related to credit cards, medical bills, and old utility bills as well as vehicle loans and mortgages where the collateral will be or has been surrendered, repossessed, or foreclosed. There is also relief for other niche categories of debt including certain types of debt owed to the government.



Bankruptcy is an easy solution for those that could balance their budget if not for monthly payments to Creditors that provide no current value to the means of a household. After eliminating monthly expenses used to pay back old debts, attention can be averted to expenses necessary for a reasonably comfortable life, like the mortgage payment, groceries, and utilities to name a few.




Free Consultation




Bankruptcy is a practice suitable for an experienced debt relief attorney, like those at Smith Law, Ltd. Because there are so many nuanced in the application of bankruptcy law, it is inadvisable that an individual not experienced or knowledgeable about Title 11 of the U.S. Code, and how the courts have interpreted those laws, to file bankruptcy without the assistance of counsel.




If you would like to speak to experienced debt relief attorneys please contact Smith Law, Ltd.




We are a debt relief agency. We help people file for bankruptcy relief.