Most American households have debt—whether it comes in the form of lingering student loans, car payments, or a mortgage. However, it is not always unmanageable. It is when your regular monthly payments start overwhelming you that problems can snowball. While debt relief services can help get you out of the problem, being aware of your situation and working to prevent it can save you a lot of stress. Here are three strategies to get ahead of the problem. 

How to Avoid Falling Into Debt

1. Create a Realistic Budget

Outline monthly expenses with due dates, and then create a plan to pull the associated costs out of specific paychecks throughout the month. After pulling out bills, set aside realistic amounts for other expenses, like gas, groceries, and entertainment, and try to stick to that budget.

Of course, while having a picture of your finances is important, it's not always easy or even possible to avoid overspending. In addition to clipping coupons, you could consider growing a small garden to supply your family with cheaper vegetables. You can negotiate with many internet providers for a lower rate. There are also apps now available that can connect people with easy ways to earn a few bucks by completing simple tasks, such as filling out surveys.

2. Save for Emergencies

debt relief

Emergency expenses—like car repairs and medical bills—are often the start of debt accumulation. When these costs arise, they often require people to rely on high-interest loans or credit cards for quick access to cash. Alternatively, the money is pulled from other intended expenses, resulting in late fees and additional costs. Once you fall behind, it's incredibly challenging to get ahead again without professional debt relief solutions, like filing for bankruptcy. 

An emergency fund can help prevent this. Create a savings account and try to maintain at least $1,000 in it. This can come from months with a third paycheck or from rounding up all purchases to the nearest dollar and moving the change over. There are even some apps that will help you do this automatically.

3. Pay Off Credit Cards Monthly 

Recurring accounts, like credit cards, can help build credit. However, they can also quickly get out of hand and lead to substantial debt. To avoid this, set a personal limit for each card every month. The amount should be realistic and fully budgeted ahead of time. Once the monthly statement is due, pay it off fully to prevent interest charges. 


If mounting debt is holding you back, fight for a second financial chance with assistance from Behm Law Group Ltd. in Mankato and Marshall, MN. The bankruptcy attorneys provide debt relief solutions to residents across southern Minnesota, including Blue Earth, Nicollet, and Le Sueur counties. Learn more about their consumer bankruptcy law services online, and request a case consultation today at (507) 387-7200.