Bankruptcy is a very sore subject, that many people do not want to consider.
More and more people in the USA and the UK are filing for bankruptcy, not knowing that there are easier options than losing everything.
How to avoid bankruptcy: 1.
Financial activities are monitored closely by our tax offices, you may not think that, but when you put money into the bank, the tax office automatically receives notification of the transaction.
Always pay tax on anything you earn, or you will find yourself being caught out later down the line 2.
Avoiding taking out loans is another way of avoiding bankruptcy, every day offers are advertised in the media offering 0% interest on certain items.
Yes its true, it means you are paying no more than what you would have normally paid for the item, but the underlying problem is; will you be able to keep up with these payments? Will you be able to comfortably pay off the amount each month without your creditors having to run after you.
3.
Saving is the one real way that could save you from bankruptcy, the safest way indeed of saving would be to use a bank, but many find they spend their money if they have access to it with a debit card.
Another way to save would be to use a Building Society, they will most likely not offer you a debit card, which in turn will make it much harder and more of an effort to access your money.
I know many people who save at home, for example the wine bottle saving idea.
After you have finished a bottle of wine, clean it and when you have spare £5, £10 or £20, drop them into the bottle, this means that the only way to access the money would be through smashing the bottle.
National debt is high within the USA and the UK - do not become a victim of bankruptcy as it could mean you lose your home, your job and even your family.