There are many factors that come in to play when a person is dealing with serious financial troubles in Centennial and Littleton. Most often, financial issues are a result of money management or mismanagement. It doesn’t take long for those issues to become overwhelming, where debt begins to rapidly add up and turning things around on your own may no longer be an option. That’s when an experienced bankruptcy and debt relief attorney can step in and help. If you are dealing with the repercussions of some or all of the common money mistakes people make, call attorney Barry Arrington to begin your journey to financial freedom.
Common Money Mistakes People Make: Contact the Best Littleton Bankruptcy Attorney
Here is a list of some common money mistakes I have seen people make, that often precipitate the need for debt relief intervention:
Overspending on housing: On average, your rent or mortgage payment should not exceed 1/3 of your monthly income. If you are spending beyond that amount, you are not leaving your self enough money to cover other expenses, especially if something unexpected comes up like medical bills or job loss. You may begin taking on debt to cover the other necessary expenses, which is never a good idea.
No budgets: Financial planning is key. You and your household should have both a monthly budget as well as a long-term budget to plan for the future. These budgets help keep you in check when it comes to expenses and give you a guideline as to how much spending money you actually have. Not having a budget can lead to overspending and may result in a lack of preparedness if a large unexpected expense comes up.
No saving: It is vital to have a cushion to fall back on. Life can be unpredictable and often the unpredictability leads to new expenses. You never know when an appliance in your house may fail or your roof may need some serious repair. With no savings to draw from, replacing these items becomes new debt you must take on.
Not realizing when it’s time to get help: Often, I have seen people try for far too long to get their finances in order before they reach out to an Aurora or Littleton bankruptcy attorney. The longer you carry your debt without the ability to make payments on it, the more likely you are to have your wages garnished, your property repossessed, your home foreclosed on, or be sued by a creditor.