Anyone who has completed a Chapter 7 or Chapter 13 bankruptcy knows how increasing expenses can create a financial crisis, which could eventually lead to the necessity of seeking bankruptcy protection.  But just like all those “little things” can predictably add up to a debt crisis, there can be many “little things” that add up to big savings each month if you know where to save.  Here are a few to consider:

• Is your “free checking account” one that only used to be FREE? Economic times change and these days it is more likely that your bank charges a monthly fee for what used to be a FREE checking account.  If you need to keep a large minimum balance on the account to avoid service fees, then you might want to consider other local banks or online banks with lower or no minimum deposit requirements.
• Credit card balance transfer fees can cost. At some point after your bankruptcy you might open a small credit card to rebuild your credit score with.  It’s likely that you will get offers for an even better sounding card – one where you can transfer the balance on your old card and save interest charges.  But you may be better off not opening the new card if balance transfer fees, annual fees, and activation fees eat up all of the potential savings from the lower interest rate.
• Retail store discount cards: You might find yourself ready to pay for your purchase at the checkout counter of a local store.  Suddenly the sales clerk informs you that you qualify to save 10% on today’s purchase – if you sign up for an in-store credit card right now.  The fees on the card may exceed any savings you are offered as a sign-up bonus. Plus by signing up on the spot you rarely have time to look over the full details of the offer to check for hidden terms and fees.
• Late fees: now that you have a financial fresh start through bankruptcy, don’t waste it on late fees for credit cards or any other bills.  Keeping track by whatever means, checking online bank balances, or even keeping a slip of paper in wallet or purse to track expenses as you spend on a daily basis.  Awareness means control:  when you get near the limit of what you can afford without juggling bills or getting late fees – then you can accurately make a buying decision.

Financial Freedom Law is an experienced, compassionate partner that can help you decide among many options, depending on income, assets, the nature of your debts, and the goals you may have after completion of a Chapter 7 or Chapter 13 bankruptcy.  Please contact our Sacramento law firm at 916-313-9069 or via email at info@california-bankruptcyattorney.com.