A Huffington Post article I stumbled upon online featured a woman and her story on how she went from being $40,000 in debt to being debt-free.
The woman, Lauren, evaluated her situation and expenses and found her grocery bill, nearly $1,000 a month, was just too much.
“If I could go from spending $1,000 to $200 a month on groceries, I could quit my job and be a stay at home mom,” Lauren said. “So I learned how to feed my family on $50 a week for three years while we got ourselves out of debt.”
Lauren did this by using coupons, which can be a smart tactic for saving money if done the right way. If done the wrong way, you could end up buying things you don’t normally buy just because you have a coupon, and thus spend more money.
I commend Lauren on her ability to get out of debt by frugal spending, however I know some people aren’t in a position to rely on only saving and frugal spending to get them out of debt.
This is where a bankruptcy becomes a great option. By filing for bankruptcy, your debt can either be discharged through a Chapter 7 or lumped into an affordable 3-5 year repayment plan through a Chapter 13. After the process is complete, you have a fresh start and an opportunity to re-establish and rebuild your credit the right way, and this is where Lauren’s frugal spending and her tips can really be a benefit.
Here are some money-saving tips Lauren offers:
- set a budget
- plan your meals
- use a slow-cooker to enhance cheaper meats
- start shopping early
- use apps that help you save
- look online for ways to save money
- time your technology purchases to the best times of the year to buy certain things
- get free coupons
- plan your flights for mid-week
Each of these tips are great to keep in mind for life after a bankruptcy. If done the right way, with the right changes and attitude afterwards, a bankruptcy can really be a life-changer for you financially.
At Darrell Castle & Associates, we not only want to help you get out of debt by walking you through the bankruptcy process, but we also want to help you recover from it. We do this by offering you access to a great 14 week program called “7 Steps to a 720” that will teach you secrets the banks don’t want you to know in regards to re-establishing and rebuilding your credit the right way.
If you have any questions or if you’re considering filing for bankruptcy, you can speak to one of our experienced Memphis bankruptcy attorneys, free of charge, by filling out the “Get in Touch” form below or by calling us at (901) 327-2100.