Tuesday, May 23, 2017

Three Common Expenses Left Out Of Budgets That Can Lead To Bankruptcy

We all know that coming up with a budget that works is hard, because no matter how well you plan there always seems to be an emergency or other overlooked expense that wrecks your plan. But if you are able to develop a budget that makes sense and that covers all of your needs, you can not only get out of debt but can also start saving so those emergencies do not become your financial downfall. When thinking about what to include in a budget some of the basics come to mind immediately, such as your house and car payment. But be careful not to leave other things out, or you might have to start over and come up with a new plan.

Three common expenses that get left out of budgets, and that can also lead to the need to file for the protection of bankruptcy, include:

         Medical expenses: if you are lucky enough to have your basic health care coverage provided for, at least in part, through your employer it can be easy to forget to include other expenses like prescriptions or co-pays. But if you frequent the doctor, it is essential that you include these expenses in your monthly financial plan.
         Auto insurance: depending on how you pay your car insurance, you might be shortchanging this expense. For those that pay weekly it can be easy to just multiply by four to get the monthly expense, but that method fails to take into account months where there are overlapping weeks and so the actual week count is closer to 5 weeks.
         Late fees: if you have a pattern of paying the majority of your expenses after the due date you are getting charged a late fee each month. While it is best to pay on time, late payments do happen. The best thing to do is know your habits and take those into account when coming up with a budget.
Even with a budget you can get into financial crisis. If so, bankruptcy can help. Bankruptcy will eliminate or reduce what you owe, and even puts an end to the need to pay a late fee or rely on overtime and/or bonuses to make ends meet. If you are having a hard time paying all of your bills on time, let us help.

If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

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