Most everyone dreams of being debt free someday, and many New Jersey residents have resolved to make 2014 the year that it happens. The idea of being able to stop harassing phone calls from creditors is enticing. Numerous strategies exist for eliminating debt, from cutting spending to filing for bankruptcy relief.
Cutting spending may seem like a simple solution, but some people fail to do it. Eliminating luxuries such as dining out or manicures, at least for a while, could provide the extra money needed to pay off bills. After luxuries are cut, other spending such as cell phone plans and cable could be limited as well. Once the bills are paid off, these items can be added back into the budget, if possible.
Using any extra money to pay off bills instead of incorporating it into the normal budget may help also. Income tax refunds or raises are one source of extra money that can be put toward paying off bills. These monies are not part of the normal budget and can be kept aside for bills as long as needed.
For New Jersey residents that have exhausted these strategies and are still overwhelmed with debt, filing for bankruptcy could be the answer. It is not necessary to continue taking calls from creditors or to avoid answering the phone. Filing bankruptcy can stop harassing phone calls from creditors, allowing a filer to assess his or her financial situation and eliminate debt or reorganize debt under the supervision of the court. Many people just need the opportunity to responsibly address financial obligations that have become unmanageable and start fresh in order to realize their dream of being debt free.
Source: Ebony, 5 Ways to Get Debt Free in 2014, Lynnette Khalfani-Cox, Jan. 6, 2014
