Texas residents like you opt for Chapter 13 bankruptcy because a repayment plan works in your favor. But did you know that you still have to keep on top of secured debts that survive bankruptcy? You must make mortgage and loan payments throughout the bankruptcy process.
Because of this, you need to control your spending tightly. Even a little bit of excess could throw your entire repayment plan off target, and you do not get a third chance.
Do not spend money you do not have
Forbes discusses ways to avoid credit card debt. One of the biggest ways is to avoid purchasing what you cannot afford. A good rule of thumb is to treat your credit card like a debit card. If you do not have the cash to buy something then and there, do not treat your credit card like money you do not have.
Do not take cash advances, either. This results in a high interest rate on your interaction. There is also no grace period and high transaction fees. Because of the lack of grace period, interest accumulates from the day you take the advance. Even when paying off the full balance, you have paid interest.
Do not go for special services that credit card companies offer. This can include life insurance or fraud protection. You do not need these overpriced and largely unnecessary services.
Keep a pulse on your spending
Finally, track your spending habits rigorously. It is too easy to slide your credit card across the counter and pay for anything without batting an eye. It is also easy to forget how much you have already put on your card when you do that. Keeping track of spending makes it easier to save.