Seeking Additional Income Can Help You Avoid Bankruptcy
There are many reasons people may find themselves facing bankruptcy, and some of these situations are out of their control. In these situations it would be helpful to hire a Harrisburg bankruptcy attorney that can help you with the legal aspects of your bankruptcy.
But there are still some things that they can do to avoid bankruptcy and its effects.
One way to do this is to get a second job. This can be a good way to earn some extra money while you pay off your debts.
1.Get a second job
Getting a second job can be a great way to boost your income in a pinch and can help you avoid bankruptcy. However, the decision to get a second job is one that needs to be carefully considered.
When it comes to deciding whether or not you should get a second job, consider if you’ll be able to fit it into your schedule and what it will mean for your family. For example, if you work nights or odd hours, you might need to make sacrifices in your eating and exercise habits.
Another important consideration is how it will impact your taxes. Depending on your income level, you may need to set aside some of your second paycheck to pay taxes on it.
It’s also important to understand that your employment contract might have restrictions on moonlighting and how you can use it. You should check your employee handbook or speak with your human resources personnel to determine if your company allows side hustles.
2.Get a side gig
In bad economic times, seeking additional income can help you avoid bankruptcy. Experts recommend working a second job or side gig that can produce an extra stream of income.
One option is to look for a freelance gig that takes advantage of skills you already have and can easily complete during your free time. For example, project management skills could be useful in a freelance gig, so seek out opportunities to work on projects that require coordinating teams and tracking timelines.
It also helps if the side gig you choose aligns with your interests and passions. For instance, if you enjoy helping others, tutoring could be a great way to make money while developing your skills in this field.
Alternatively, if you like to drive people around, driving for services like Lyft or Uber could be a lucrative option. These companies offer flexible scheduling and extra pay during peak hours.
If you’re struggling to make ends meet, securing additional income can help you avoid bankruptcy. Seeking a second job or side gig could allow you to earn enough money to cover your basic living expenses, such as rent or mortgage payments, utilities and food.
Another option is to consolidate your debts through a debt consolidation loan. Using this strategy, you can replace multiple credit card balances with one loan that has a lower interest rate.
Typically, this debt relief method will not impact your credit score as much as filing for bankruptcy. However, it will result in a hard credit inquiry that can negatively impact your score for several years.
If you’re still having trouble managing your debt, consider negotiating with your creditors to lower your monthly payments or interest rates. You can also enlist the help of a credit counseling agency.
4.Stop all payments
Getting a second job, or even just a part-time job, can be a great way to help you avoid bankruptcy. It will mean spending less time with family and friends, but it could also help you pay down your debt faster.
While the extra income will help you to get out of debt, it can be a bit risky if you don’t have the fortitude to stick with it. Be sure to budget for this new income, so you’ll know how much to spend and how much to save.
If you’re lucky, your friends and family may be willing to help you out by lending you a few bucks. Just make sure to sit down with them first and figure out how much you owe, what you can afford to pay back and if it’s worth their while.
You can also cut your expenses by letting go of things you don’t really need or want. Canceling your cable, canceling your cell phone plan or skipping out on takeout for dinner can help you to free up money in your budget that you can use to pay down your debt.