How Can I Start Good Money Habits?

It is easy to get in over your head when it comes to balancing your budget and juggling monthly debts. Juggling credit cards and loans alongside other monthly expenses is hard enough. Job losses, health issues, and other unexpected events can leave you facing serious problems. 

At the Whitten & Whitten, our Indiana bankruptcy attorneys help people facing financial dilemmas. Based on our experience, the following are tips to start good money habits, whether you are trying to maintain control over your finances or are making a fresh start after filing a bankruptcy petition. 

Smart Money Practices When Dealing With Creditors

Taking out credit cards or loans and paying them back plays a crucial role in establishing a good credit rating. Many people have good intentions when it comes to financing offers, but things do not always work out the way they expect. Unexpected problems can make even minimum payments impossible. Add in high interest rates and penalty fees, and you can quickly get overwhelmed. 

Credit cards and loan companies make more in profits the longer it takes for you to pay. Some engage in predatory lender practices, knowingly extending amounts way over someone’s means in anticipation of collecting on late fees and other charges or repossessing property associated with loans. How can you beat a system designed for you to fail? By employing some smart money habits: 

• Limit your credit to just a few of accounts;
• Shop around to get the best terms;
• Pay outstanding balances in full each month or as soon as otherwise possible;
• Resist financing everyday items, such as beverages from your favorite coffee shop or items at the local grocery store. 

Maintaining a Budget

Being savvy when it comes to credit cards and loans can protect you from financial problems. If you are currently in over your head, bankruptcy proceedings in Indiana can help you make a fresh start. 

Aside from managing debts, maintaining a monthly budget is a good money habit. Our Indiana bankruptcy attorneys recommend these tips: 

• Keep a list of all your expenses;
• Add up the total to determine if you need to make more or spend less;
• Make a shopping list before going to stores;
• Plan out major purchases, taking advantage of sales;
• Cancel subscriptions you do not need or use;
• Pay yourself and put a set amount in savings each month. 

Struggling With Debts? Talk to Our Indiana Bankruptcy Attorneys

Despite your best intentions, you may still find yourself overwhelmed with debts. At Whitten & Whitten, we can help you regain your financial security. To discuss your options, give us a call or contact our Indiana bankruptcy attorneys online today.