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Do Not Be Overwhelmed By Your Debts

Appleton residents can reduce technology and reduce debt

On Behalf of | Jun 14, 2013 | Chapter 7 Bankruptcy, Firm News |

It can be said that this is the era of technology, and there are many benefits of living in this era. However, there are many costs associated with that benefit. Appleton residents can reduce debt by cutting down on their technology services and other expenses, but, if all else fails, bankruptcy is an option to eliminate debt.

One man reduced his technology services and saved $2,000 per year. Some advice for AOL users is to examine the necessity of paying for an e-mail service that has been free since 2006. Be sure that the services paid for each month are actually being used to their maximum capacity, otherwise it may be necessary to reduce or eliminate the plan.

What about cable or satellite? Is it beneficial to have the deluxe package, when half the channels are of no interest? Is cable or satellite a necessity? Perhaps suspending the service for a month or two will help to gage its necessity. There are ways around not having satellite or cable service, such as using a video subscription only or purchasing movies on an as needed basis. What about internet charges? It is possible to reduce cost by purchasing equipment that is actually being rented each month such as a modem. What about the phones? Is it necessary to have both a mobile phone and a landline?

Besides cutting down on technological services, another means of reducing debt is to reduce spending. A good starting point is to develop a budget that will allocate how funds are distributed each month. Most people fall prey to impulse purchases, which can cut a big hole in the monthly budge. Resist the urge to purchase on impulse. Develop a cooling off period to determine if a purchase is really necessary before buying.

Additionally, debtors can limit the amount of debt that is taken on by following the rule of thumb, which means that monthly payments should not exceed 20 percent of the monthly take home pay. Avoid charging purchases, unless it is possible to pay it off at the end of the month.

If all else fails, then bankruptcy is always an option. Appleton debtors facing financial challenges can file a Chapter 7 bankruptcy to eliminate debt, and get a fresh financial start. A bankruptcy specialist can help a debtor to determine if bankruptcy is the right option for that individual.

Source: Yahoo! Finance, “Tech tips: Ways to improve online life, save money,” Anick Jesdanum, June 5, 2013.