Bankruptcy
There are few worse feelings than that of bankruptcy. Experiencing one’s whole world effectively turning upside down and being left with practically nothing is a terrible and humbling feeling and the epitome of being rock bottom. It may not seem as if you can ever recover from bankruptcy, but there are ways and tips that can set you on the right path.
Never Start With A Payday Loan
As you’re left in the throes of misery and material nothingness, it may feel as if a quick and easy payday loan is a great move to make to get you up on your feet. The reality is quite the contrary however. Payday loans come with incredibly high interest rates – sometimes reaching up to 2000% – and so while a payday loan might give you some easy, short-term cash; in the long-term you will be left with even more financial problems.
The temptation to opt for a payday loan is rife amongst those who have suffered from bankruptcy, particularly considering the fact that banks are highly unlikely to lend to those who are bankrupt. However, for long-term financial success, you must resist this temptation.
Borrow Cautiously
If you must borrow and have a means to do so, make sure that you borrow at low interest rates and pay back the loan borrowed monthly. You should set a date by which your debt will be paid back and strive to meet this target.
Explore Potential Money Means
You should explore any potential avenues through which money can be made. For example, if you have any skills that can earn you enough money to get you on your feet, you should concentrate on making that money through a combination of these skills and hard work.
It might seem rather humbling putting your business or passions aside while bankrupt, however your number one intention should be to build up your basic funds and be in a position to start from scratch.
Other avenues might be through anything from tax refunds if you’re a business owner – which can be discerned by RIFT UK – or selling expensive items that you do not need.
Patience, Determination & Hard Work
The three key qualities needed in a man or woman looking to escape bankruptcy is patience, determination and hard work. You must understand that the demoralizing effects of bankruptcy can last for a long time, however through determination and hard work you will eventually, surely escape its clutches.
