5 More Ways to Improve Your Financial Outlook

Written by jessica Alba

In today’s tight economy, it is no wonder that more and more people see a bleak financial future. With unemployment at a 25 year low, millions of families are considering bankruptcy as the last resort, and the only answer to their financial troubles. If this or a similar scenario describes you, you are not alone. Even if filing for bankruptcy is inevitable, there are actions you can take today that will ease your financial tension, and provide for a brighter tomorrow.

If you read the previous article, then you already know 5 things you can do to improve your financial outlook:

•    Ditch the Guilt
•    Cut up Credit Cards
•   Review your Credit Report
•   Monitor your Spending Habits
•   Do not have Joint Accounts

All of these recommendations have been proven to help people get control of their finances prior to filing for bankruptcy, and in moving forward.   You should be able to look forward to a brighter future, not a repeat of the same old financial mistakes.

So, to start you on your journey to a better tomorrow and help your further improve your financial outlook, her are 5 more ways to control your finances:

•   Stop Throwing Good Money after Bad
•   Call a Lawyer
•   What is it Worth?
•   Empty Certain Accounts
•   Personal Inventory

As you go through all of these steps to take control of your finances, you will be better prepared for filing bankruptcy, and avoid the same financial mistakes in the future.

Stop Throwing Good Money after Bad

If you are on the brink of bankruptcy, stop throwing good money after bad. Right now, you main concern is keeping a roof overhead and putting food on the table. If you are trying to make partial payments to credit card companies, stop. If it has come to a few bucks here and there for various creditors, you are probably only putting of the inevitable.

Besides, after filing for chapter 7 bankruptcy, most or all of those credit card debts will be forgiven anyway. The purpose of bankruptcy is to give you a clean slate, a fresh start. If you are trying to at least pay a little on each credit card, right now you are just throwing good money after bad.

Call a Lawyer

Chances are that if you have not been able to make regular house payments, foreclosure is just a matter of time. Also, if you have not been able to pay the monthly bills, creditors are going to be suing you sooner than later. So, before the other shoe drops, so to speak, take control of your financial situation and call a bankruptcy lawyer.
If you get sued and do not respond, you will automatically have a judgment against you. So, be proactive and do what is right to protect yourself and your family during hard times.

What is it Worth?

If bill collectors have come knocking and you know bankruptcy is just around the corner, you need to find out what your major assets are worth. For example, go to www.kbb.com and find out the blue book value on your car. You want to know what it is worth, if you sold it today. You probably owe a lot more on the vehicle than it is actually worth. The depreciation is significant the moment you drive the car off the dealership lot. Unfortunately, it is downhill from there. So, you would be better off to sell the car, rather than to wait for it to be repossessed.

The same goes for your house, boat, camper, or any other big ticket item you may own. Find out what it is actually worth, before you file bankruptcy. In most cases, you can get more money than the bank will, if they foreclose or repossess your stuff.

Empty Certain Accounts

Also, it would be in your best interests to take the money out of any accounts that are at the same bank to which you owe a debt. If you do not take that money and ensure it goes to your basic necessities of living, they will take it to satisfy some of the loan. If they have an inkling that you are about to file bankruptcy, they will seize the money.

So, now is the time to take control of your finances and make sure that money is used for food and shelter. Forget the mall and new clothes. When your financial future is brighter, you can consider shopping. Right now, use the money for survival, and that is all.

Personal Inventory

Finally, take an inventory of your financial situation. Take stock of your assets and your debts. Record how you spend your money. Find out where you can cut back. Think of it as a pie chart. Right now, the only money going out should be on the things you absolute have to have to survive-a roof over your head and food on the table.

Even if you do not file for bankruptcy, know where your money is going and trim off the fat from your budget. No, the kids will not like only having the bare necessities for food. The piano lessons and trips to the movies may be a thing of the past. But, you will survive until financial times get better. After all, once you get off this path of financial hardship, you do not ever want to walk down it again.