Get Into Serious Debt Because of COVID? What Happens Next

debt due to covidLoris Law Firm has great Mobile Al bankruptcy lawyers. If you are in a tough situation because of the pandemic, we want to help you. We have compiled some advice from the experts that will guide you in making better decisions. Our firm stands by ready to come to your aid.

Stop Credit Card Overuse
Credit cards are so convenient. One swipe gets you all the goodies you need. Happiness ends, however, when you discover that your debt has quadrupled. Dave Ramsey, a notable financial guru, recommends entirely destroying your credit cards. Ramsey believes this removes the temptation to rack up more debt. This might be extreme for some folks. However, eliminating extra credit cards and closing their accounts is wise. Then you can concentrate on paying down the debt without constantly making it grow.

Act Differently Than Neighbors
Warren Buffett has a favorite aphorism for financial behavior. Its basic meaning is to behave in the opposite way from other people. Everyone shopping at a major retailer? Try a smaller shop instead. Everyone panicking and buying masks at a premium? Make your own at home. Everyone refusing to try a boring but essential manual labor job? Send in your resume.

Eliminate Big Expenses
Major expenses include the mortgage payment, car payment, groceries, and utilities. To help you start getting out of debt, the idea is to eliminate the excess. Own two cars? Consider selling one. Better yet, sell both and buy a very used model that still provides basic transportation. With your mortgage payment, many lenders are being required by the government to show grace. Do some research about what that means for your particular situation. For groceries, buy on sale and avoid shopping for unneeded items. Beans and rice may be boring, but it is cheap.

Loris Law Firm wants to be Mobile AL bankruptcy lawyers that you can trust. Contact us at 251-432-3100.