Today, the average American has more than a single credit card. This coupled with the American lifestyle of “gotta have it now” has led to a lot of problems. Specifically speaking, it has led to a lot of debt. In fact, in many cases, the debt has gone out of the control and individuals have been forced to file for bankruptcy. Believe me, bankruptcy is something you’d want to avoid. After all, living at the mercy of others is never a good feeling.

Are you facing financial difficulty and pondering filing for bankruptcy? If yes then you’re not alone. Make it absolutely clear that your debt has got nothing to do with your personality or way of living. Even the very finest of people may go bankrupt at some point in their lives. Most people who suffer bankruptcy are regular, hard-working people who encounter some sort of blockade. A single blockade whether it was an accident, reduction in wages or the loss of job can send you in the wrong direction.

Come what may, you cannot prevent the aforementioned blockades. What you can do though is limit living on credit. Your debt will start to multiply as soon as you start using your credit cards to pay for what you can’t afford. Eventually, your debt will cause you to go bankrupt. The best thing you can do to prevent such a situation from occurring is avoiding the things that lead to bankruptcy in the first place. Following are 3 tips to avoid bankruptcy that credit counselors recommend.

Develop a budget

This is a no brainer. If you don’t have a budget, there is a 90% chance that you’ll go bankrupt. Basically, you need to list down all your monthly expenses and allocate resources/money to them based on their importance. Limit the money you spend on unimportant things such as home décor, branded clothing, designer shoes, and so on. This will help you to better manage your debt and avoid bankruptcy.

Pay off your debt over time

If your debt hasn’t yet gone out of control, sit down and determine how much you owe. In such a situation, it is more than possible for you to pay off your debt on your own if you re-adjust your budget and use a debt management plan. Also, taking to a credit counselor would be a good thing to do in this situation.

Take help from credit counselors

As mentioned above, credit counselors can help you to better manage your debt. Additionally, they can advise you how to avoid bankruptcy. Knowledgeable people, credit counselors have a sound financial background and can tell you anything and everything you’d need to know about avoiding bankruptcy.


Bankruptcy is not a good situation to be in. Luckily, you can avoid bankruptcy by using the tips mentioned above.