Is Bankruptcy In Your Future?

The number of bankruptcies in the U.S. is rising at a dangerous speed. Last year, over two million bankruptcies were filed! This is a serious problem! How can you know if you're on the road toward bankruptcy? Here are seven warning signs:

1. Not using a budget
2. No control over spending
3. No emergency fund
4. Having a house you can't afford
5. Owning a car you can't afford
6. Using credit cards
7. Having student loans

• Build up a beginner emergency fund of $1,000. Sock this money away as quickly as possible. Emergencies will happen so be prepared.
• Start living on a monthly budget. Make sure you cover the basics first: housing, utilities, food and transportation. Then use what is left over to aggressively pay down debt. Get free budgeting forms here.
• Attack your debt! Evaluate what you can sell to cut your debt. Consider taking on a part-time job to accelerate your climb out of debt. Sell so much stuff that the kids think they're next!
• Add to the emergency fund. Once you are out of "crisis mode" (all debt but the house paid off) focus on getting 3-6 months of expenses in your emergency fund. When it's fully funded, you can start making your money work for you!

Dave's 13-week class, Financial Peace University, will give you the tools you need to avoid bankruptcy and win with money.