Although it's strictly against the Bankruptcy Code to charge your credit cards to buy Christmas gifts and then file for bankruptcy, often times than not, we see clients who have foregone paying their mortgage and vehicle notes in order to afford gifts for their children and family members during the holidays. In other situations, their overtime at their employment has been scaled back and this has put them in financial strain.
Now that the holidays are over, the reality has often set in about how the next house or car payment will be made to the lien holder to avoid a foreclosure or a repossession. Overspending during the holidays (whether for pleasure or a loss of income/necessity), an anniversary or an upcoming birthday is something that happens quite often.
Below, you will find some tips on what to do in order to avoid the post-holiday spending blues and help you get back on your feet. They are not intended to be, nor should be, construed as formal declarations of legal advice.
1. Create a financial plan and stick to it; this is easier said than done. However, take a few minutes to write down your financial needs as opposed to your wants. Sit down, budget your expenses and stick to it. This will help you pay off some of those extra expenses that you may or may not have overspent on.
2. Moving forward, buy what is needed and not into the gimmicks of luxury items that are not day-to-day necessities. When you are in the moment, stop to think about whether the item is something that you truly need.
3. Learn from your mistakes; that is, understand that everyone makes financial moves that are not the best. Instead of trying to rewrite the past, simply learn from the misstep and move on, keeping in mind not to deviate from your original financial plan.
Lastly, remember that the attorneys at Bournakis and Mitchell, P.C. are experienced bankruptcy attorneys who are prepared to provide you with financial relief. Call us today to schedule your FREE CONSULTATION!