What's Your Plan B?

[jobfreeworld]

So that you never have to file BK again, what steps have you taken to insure you never get in this situation again.

Theresa

[Flamingo]

Our Rules:
#1 - We don't buy it unless we need it (no impulse buying).
#2 - There are no Jones's on our street anymore so we just keep up with ourselves.
#3 - Limited credit cards that are paid off and kept at zero balance.
#4 - Keep a budget.
#5 - Keep a savings cushion along with 401(k)s.

Our downfall was getting caught with our pants down with a big job loss and having a big debt load which we could afford at the time but got hit with the unexpected layoff. We could not recover from the income loss as there was no job offer of anything even close during the year after the job loss. Then we filed. We are now prepared for any job loss and can survive if it happens.

[ichb]

Cash and Carry

1. Budget
2. Save
3. Plastic is evil


We haven't even filed yet and we've started working on this. We've figured out an estimated budget. Once a week one of us goes to the bank to take out the CASH needed for our errands, groceries, lunches, prescriptions, tire changes, gasoline, haircuts (get the idea). Check book and check card stay home. That way if we try to get too much at the grocery store, we have to put it back, we also won't be able to spend more than we intended for anything. I surmised that if we had the checkbook or check card we would be adding an extra $10 bucks to our purchases every now and then and that will add up.

No more credit cards for me EVER. I'll bet that I'll have no problem getting a home loan if I walk in to the loan office with a big down payment and cash in the bank.

[PaKettle]

So that you never have to file BK again, what steps have you taken to insure you never get in this situation again.

Theresa

1) We are never going to use plastic for more than, say, a grand, again, not even that much for long term debt (i.e. we'd only borrow that much if we knew we could play it back within a few months or if it were an emergency we could not cover with our emergency fund)

2) We're trying hard to get an emergency fund of $6-10k but so far that is proving difficult. We do see hope of my wife getting more hours in the near future though which would help us do this.

3) We are trying not to buy too many things we don't really need and cut back on luxury expenses and even expensive food items that we can use less of.

Note to Flamingo: If you want to re-establish credit keeping a small balance of at least a few hundred dollars on a credit card helps to do so.

I survived bankruptcy with one card with a $300 limit , and so we are keeping a $100 balance on that one just to establish our credit worthiness. I'd like to have a card or two with $1500 limit to use for out of the country car rental. Sometimes they require a $1000 or more deposit on a credit card.

But we will NEVER accumulate credit like we did before nor accumulate debt!

[One Half Full]

Go back to school, get a better job.

My BK was not really about over-using credit cards. It was about not having any money in the first place. However I've seen enough illustrations of what can happen to say I won't be relying on them for much in the future.

[BKOnce]

Sleep & Rest-in-Peace.

[keepmine]

You have to raise your income and, be certain you have adequate health insurance as well as long and shorttrem disabilty plans.

[chloe0724]

We plan on never putting anything on credit in the future that we can't pay off in one billing cycle. Credit cards are the easiest wway to get in trouble. Also, we need to start saving money for things that cause money problems. If we had a savings cushion to begin with, my husband getting sick wouldn't have hurt so much!!

[sunshine mary]

Were never ever using CC's again !! It's cash or nothing...If we can't afford the house, cars etc I guess we'll have to move and walk or ride a bike LOL !!!