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Saving Strategies for a Promising New Year

Posted on in Bankruptcy

The recent release of statistical data by the Administrative Office of the U.S. Courts reveal that bankruptcy filings were down by 11 percent for the 12-month period ending March 2014. The big question, however, is will the downward trend continue throughout 2015?

Time will only tell. Greg McBride, Chartered Financial Analyst® (CFA) and senior financial analyst for Bankrate.com, reveals that there has been an increased awareness on saving, as one in every six consumers are deeming financial security as a top priority.

As a means of establishing a fresh financial start in 2015 and avoiding financial pitfalls possibly resulting in personal Chapter 7 or Chapter 13 bankruptcy, McBride offers consumers numerous budget tips and saving strategies for the New Year.

Monitor Monthly Spending

In keeping with the 60 percent of American consumers who devise a monthly budget, this practice of fiscal responsibility establishes where cut-backs can be routed to increase overall savings efforts.

To establish a workable budget, McBride suggests tracking spending over a two month period to devise the budget that best serves financial liabilities. Smart budget tracking should include even the minimal of expenses up to monthly liabilities such as utilities and mortgage obligations.

Establish an Emergency Savings Account

With most bankruptcies resulting from unexpected medical expenses or loss of wages, McBride acknowledges that one in four American consumers are void of any type of emergency reserve.

The resolution to this problem is to establish a habitual act of savings. By utilizing direct deposit and applying an automatic savings payment into a designated savings account, most consumers will become accustomed to this action and in time will not even miss the designated savings payment.

Curtail High Interest Rate Credit Card Spending

Aside from unexpected medical expenses or loss of wages, high interest credit card debt ranks high on the bankruptcy contributor list. To avoid this consumer pitfall, McBride suggests that doubling down and paying off credit card balances often is the best return option. When managing credit card debt, McBride suggests paying off balances in descending order (highest to lowest balances) and incorporate this practice into the monthly budget plan.

Financial problems can plague anyone. If you find your financial woes hindering your plans for a fresh start in 2015, bankruptcy may be a viable option. For more information on how bankruptcy may work to resolve your financial and legal problems, the experienced Lake County bankruptcy attorneys of Newland & Newland, LLC can help. For more information on our services, contact us to schedule your free phone consultation today.

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