Filling of bankruptcy often become the last choice for people who has a huge debt. By doing this they could at least lessen the burden to pay off their debts. Some people might be wondering why other people could trap into the huge debt and ended up with bankruptcy. They just didn’t understand that most of these people are overspend and they didn’t learn from it.

To banish the overspend attitude, a person must develop a habit of writing down what they need and go for a shop based on the list. They also need to remember, the things that they want probably not in their ‘need list’.

There are so many reasons of why people do this, and most of them caused by overspend that leads them to bankruptcy. Bankruptcy could start from a very small form, such as credit card. People often used credit cards to buy things that they want to get, not things that they need. This behavior leads them to use the credit card all over again. They often think that they could pay it off when they get their salary.

Some of them do that, and some others decide that they only need to pay the minimum amount so they could have more money to spend. Then, after they spend the money, they saw something that they want, use their credit card, and the cycle repeats. In the end, they realize that they have too many debts that they could not pay.

When they reach this point, they’re starting to search several ways they could do to pay off the debts. Some of them choose to do the debt consolidation that proven to ease their burden by make a smaller monthly payment. However, they tied themselves to a very long debt payment time. This could range up to 10 years to pay all of it. In the meantime, the desire to keep buying things that they don’t need will roar again and again, and they use their new credit cards to buy the stuffs that they don’t need.

This is a huge cycle of bankruptcy. There are so many ways you can do to avoid this and literally secure your financial life.

Start with having one or two credit cards only. Use this credit card carefully, and track down all of your expenses. Always repeat the questions in your head whether you need this particular stuff or not before you buy t. If you think you really need it, then by any means, buy it! But if you don’t find the cheaper substitute or simply don’t buy it.

You need to plan your financial life since the very beginning. Get a financial advisor, and do some bookkeeping for your own activities. The financial advisor could help you to plan your financial life better and make sure that you’re actually stick with it. You probably need more time to get familiar with this, that’s why you need to start as soon as possible, so you don’t have to filling out for bankruptcy and protect yourself from overspend your money.