Texas residents like you must manage expenses carefully when going through bankruptcy. This is particularly true of Chapter 13, in which you must stick to a debt repayment plan. If bad habits remain, you may struggle with additional debt on top of what you try to pay off.
So what can you do to limit the chance of this happening? What are the best ways to manage expenses while paying off debts?
Managing your credit card expenses
Forbes discusses ways to avoid extra debt. Many revolve around how you use your credit card and how you view your money. When it comes to credit cards, you may need to change the way you look at them. Do you think of a credit card as a way of borrowing money to pay back later? If so, you must stop and reconsider.
Instead, view a credit card as a different form of money you already have. Do not spend more than that. This way, you can avoid overspending. You will not overbuy with the assumption you can repay later with funds you may not have.
Paying your bills
Pay off all bills on time, too. This goes for credit cards and every other bill. In doing so, you avoid having to pay interest. Interest often stacks up fast, especially if you have a high interest rate. The best way to avoid interest debt is to avoid interest altogether.
Do not take cash advances or anything else that makes your interest stack up. You start paying interest for cash advances from the day you take it, which means you will pay a sum even if you repay in time. These are just a few of the things to remain vigilant for.