The bankruptcy period can be a very difficult time for you and your family, especially if it falls around the holidays. With financial ruin surrounding you, you might be concerned that you won’t be able to afford the normal costs associated with the season. Here are a few tips to help you survive the holidays in the midst of your bankruptcy.
Pay Your Bills First
Whether you’re going to be forgiven of your debt or you’re working with a financial professional to pay it off, remember that even though it’s the holidays and tradition demands gifts and other luxuries, your number one priority is getting your finances in order. This means that taking care of your monthly bills and expenses is more important than buying top-of-the-line gifts for your family.
Pay Attention in Debt Counseling
Those who file for bankruptcy are generally required to attend debt counseling. This program is meant to educate those who have had serious financial troubles on managing their credit lines and incurrent debt. It often involves negotiating with creditors to find a repayment plan as well as offering education and advice for managing your finances. Pay attention to these tips and take them to heart as you plan for your holiday spending.
Make a Budget
This may go without saying, but if there was ever a time for a strict budget, now would be it. Whether you use an Excel spreadsheet, online budgeting software, or your checkbook, a strict budget is the only way you will survive the holidays during bankruptcy. Write down your major monthly expenses first, and then factor in your holiday spending. Your holiday budget may be very sparse compared to other years, but if you’re creative, you’ll manage.
Don’t Touch the Credit Cards
There will be a time when you need to open a new credit card and build your credit through it, but now is not that time. You need to be sure that you can control your spending and stay out of debt. Using your credit cards will only make things worse. Stick to your budget and if you can’t pay for something with the money in your checking account, don’t buy it.
Eliminate Unnecessary Expenses
Go through all of your monthly expenses and decide which of them are actually necessary and which ones you can live without. For example, you probably don’t need cable tv, your gym membership, the most expensive insurance premiums, and so on. If you cut out these expenses, you might find that you have the money you need for the holidays.