Chicago Bankruptcy Attorney Tips for Avoiding Late Payments
Those late payments can cost a lot more than the late fees they result in.
When consumers take longer to pay their bills, businesses have less cash handy to pay their own bills, setting off a cycle that slows down the entire economy, Chicago bankruptcy attorneys say. Statistics agree. Legal firms, for instance, received payments approximately three days later in 2009 than in 2008, according to financial information firm Sageworks. Architectural and engineering businesses waited closer to five days longer, while poor tax preparers and bookkeepers saw wait time for their money increase by 10 whole days.
In most cases, the economy is out of our control. But this might be the one time when you can make an impact on the bigger economic picture. By reducing your debt, you can free up funds to pay your bills on time, bidding adieu to late payment fees and boosting the economy at the same time.
Exactly how are you supposed to pay bills on time when you don't have the money to do it, you may ask? If you're like most Americans today, a good portion of each paycheck is going to creditors and lenders thanks to debt caused by credit cards, medical bills, car loans and other obligations. And not only are you paying back money you borrowed, but you're paying interest as well. If you can reduce that burden, you'll get to keep a lot more of your paycheck.
Bankruptcy can often do the job by allowing you an affordable way to make payments, while also protecting you from foreclosure or creditor lawsuits. With more money in your pockets, it will become less of a struggle to pay the bills you can't avoid - like the mortgage, utilities, and even your tax preparer. Not to mention you'll be less compelled to rely on credit, helping you avoid falling into the same old debt trap in the future.
Aside from day-to-day stuff like paying the bills, having some extra cash around can help you out in emergencies, help you save for the future and give you the wiggle room to occasionally do something fun, like take a vacation or treat yourself to that new pair of shoes you've been eyeing.
Find out if a bankruptcy plan can help you make late payments a thing of the past with a free one-on-one debt analysis courtesy of a Chicago bankruptcy attorney. Or join us at a free community financial workshop in Chicago. Because paying your bills on time pays off.