How do you ensure that you have the required funds that are sufficient to take care of your debts and other liabilities? It’s something that you would really need to think about. Most of us are not really equipped to deal with our obligations. But isn’t that the most mandatory part of our lives that requires dealing with thorough perfection? Obviously yes!! If you protect yourself from your debts then you will surely avoid bankruptcy.
What are the different types of obligations you have that can make you bankrupt? Just imagine of a situation that you have bought a new house in a plush locality. Obviously, with the high realty prices you can’t pay all that money by yourself. You need to take a loan. Your EMIs are significant and let’s say that you need to pay $1000 EMI per month. Now if you are currently having a job that pays you $6000 per month then probably you are well-equipped to take care of your EMIs. What happens if something wrong happens to you? I am putting the most pessimistic scenario because this is where you will really need to manage the risk.
Have you made sure that you have covered this risk? What you need to do is to buy an insurance cover for your loan amount. You might need to pay a few dollars extra. But that is worth paying as it will protect your spouse and kid from an adverse uncertainty. Same thing applies if you have bought a car and are paying EMIs for it. Make sure that you have covered all your major risks. To prevent bankruptcy you don’t need to insure yourself for petty risks but term insurance is a must. Always make sure to cover your primary liabilities comprehensively in the order of their severity.
At any point of time don’t have more than 1 loan. I am always against credit card. But you can have 1 credit card which you always pay well ahead of time. This way you will significantly reduce the risk of bankruptcy.
Do you have sufficient money in your bank and have you nominated your dependents?
You might have huge money lying in your bank account. If you have not nominated anyone then no one will be able to use the money in your bank account in your absence. Make sure that you nominate your dependents so that they don’t face a herculean task getting the money from your account when they actually need it.
What are the other things that you can do to prevent bankruptcy?
http://expertscolumn.com/content/how-cordially-avoid-shopping
http://expertscolumn.com/content/revive-spirit-indian-hockey
http://expertscolumn.com/content/should-people-migrate
http://expertscolumn.com/content/how-choose-topic-write
http://expertscolumn.com/content/how-reduce-traffic-congestion-cities
What are the different types of obligations you have that can make you bankrupt? Just imagine of a situation that you have bought a new house in a plush locality. Obviously, with the high realty prices you can’t pay all that money by yourself. You need to take a loan. Your EMIs are significant and let’s say that you need to pay $1000 EMI per month. Now if you are currently having a job that pays you $6000 per month then probably you are well-equipped to take care of your EMIs. What happens if something wrong happens to you? I am putting the most pessimistic scenario because this is where you will really need to manage the risk.
Have you made sure that you have covered this risk? What you need to do is to buy an insurance cover for your loan amount. You might need to pay a few dollars extra. But that is worth paying as it will protect your spouse and kid from an adverse uncertainty. Same thing applies if you have bought a car and are paying EMIs for it. Make sure that you have covered all your major risks. To prevent bankruptcy you don’t need to insure yourself for petty risks but term insurance is a must. Always make sure to cover your primary liabilities comprehensively in the order of their severity.
At any point of time don’t have more than 1 loan. I am always against credit card. But you can have 1 credit card which you always pay well ahead of time. This way you will significantly reduce the risk of bankruptcy.
Do you have sufficient money in your bank and have you nominated your dependents?
You might have huge money lying in your bank account. If you have not nominated anyone then no one will be able to use the money in your bank account in your absence. Make sure that you nominate your dependents so that they don’t face a herculean task getting the money from your account when they actually need it.
What are the other things that you can do to prevent bankruptcy?
http://expertscolumn.com/content/how-cordially-avoid-shopping
http://expertscolumn.com/content/revive-spirit-indian-hockey
http://expertscolumn.com/content/should-people-migrate
http://expertscolumn.com/content/how-choose-topic-write
http://expertscolumn.com/content/how-reduce-traffic-congestion-cities
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