Staying Out of Bankruptcy Court.
Get debt under control. 

(PRWEB) -- Americans today are borrowing more than ever. According to the Federal Reserve, we've now racked up more than $2 trillion in consumer debt. At the same time, the rate of personal savings is nearly non-existent--just a paltry 0.3 percent according to the U.S. Department of Commerce.

Debt has become part of the American way of life. To prevent it from taking over your own life, take the common sense steps necessary to keep your debt firmly under control.

This means that more and more Americans are just a job loss or major medical bill away from bankruptcy because many people have little or no cushion to fall back on. And in fact more people than ever are filing for bankruptcie. The American Bankruptcy Institute says that there were 1.6 million non-business bankruptyc filings in 2003--the most ever recorded in a single year.

Today, bankruptcy is relatively easy to declare. And the more common it becomes, the more accepting society has become. But are easy bankruptcies a good thing? Among members of the Armchair Millionaire community, opinions are mixed:

"Several people I know have declared bankruptcy. For them it is a life style of high living and walking away debt free every seven years." --is24

"Bankruptcy is a solution of last resort but there are the cases where it makes sense and is really the only way to get back on track financially." --JK

• Burdened with Debt
• Reducing Credit Card Debt

"I know people who spend carelessly and rely on bankruptcie to bail them out. In just a few years there are no longer blemishes on their credit and they are back to overspending again. Bankrptcy should be reserved for those suffering unforeseen financial hardships such as fire or flood, and not for those who can't control their spending. --John

Get control of your debts.

Regardless of their opinions about those who file for bankruptcy, people do seem to agree on one thing: They themselves want to steer clear of bankrutpcy court. Use my checklist to ensure your own solvency.

The Armchair Millionaire's Checklist for Avoiding Bnakruptcy
Build an emergency fund. A safety net of cash will help you through the unexpected. Shoot for having a minimum of the equivalent of three month's worth of expenses.

Use your credit wisely. Just because you have a credit card with a $25,000 limit doesn't mean it's smart to actually use all that creidit. Aim to use no more than 10 percent of your total available credit from credit cards and home equity, bad creidt. This will ensure that you have a healthy cushion of credit available to you if a real emergency comes along.

Insure your health. Large medical expenses are either the main reason or an important factor in many bankruptcies. If you don’t receive adequate health coverage from your employer, work with an independent agent representing several companies to find the best buy or explore different offerings from associations you may have membership to, such as a local trade association or religious or civic organization.

Buy less house. Many mortgage lenders these days are all too happy to give you a larger mortgage than you can actually afford. This means it's up to you to limit your mortgage debt to an amount that will not overextend you every month.

Consider credit counseling. If you still find yourself in over your head, think about using the services of a credit counseling agency. A good one will work with you to help you consolidate your debts and with your creditors to create repayment plans. It should educate you in the specifics of improving your overall financial picture. However, step carefully here: There are many unscrupulous credit agencies out there that charge excessive fees and fail to deliver services as promised. Thoroughly investigate any agency before you make a decision to work with it.
Onlnie bnkruptcy information.

Lewis Schiff founded the Web site in 1997. for more info www.armchairmillionaire.com.