Feeling overwhelmed by financial obligations? You aren’t alone, many people feel the enormous weight of their financial responsibilities every day. The good news is, there are legal and practical ways to manage your responsibilities without facing financial ruin. Plus, you won’t have to sacrifice your morals to get your finances back on track. Here are five smart strategies to help you take control of your finances and stay on the right side of the law.
1. Managing Debt
You shouldn’t expect your debt to just go away. While in some cases your debt may get settled or deferred, such as if you claim forbearance on a student loan or claim bankruptcy, these are really the only ways for your debt to get forgiven. You should focus on paying down your debt to demonstrate your creditworthiness to lenders.
2. Minimize Taxes
Minimizing taxes legally is a smart financial move. You can reduce your taxable income by investing in retirement accounts and opening a health savings account. You should also maximize your deductions including mortgage interest, student loan interest, charitable donations, and medical expenses.
3. Child Support
You may have financial obligations like child support that you need to pay. There is no way to legally avoid making these payments, but you may be able to reduce payments by going through the courts. If you have a change in circumstances, your lawyer can file a motion to reduce your payments. This can include job loss, medical issues, changes in custody, or increased financial need of you or your dependents.
4. Seek Assistance
To keep up with your financial obligations, you may need to cut non-essential expenses. You may also need to seek financial assistance from government programs or non-profits like SNAP or Medicaid. Non-profits can also help you with rent or food assistance. You may also be able to negotiate some of your debt with creditors so that your payments are more manageable.
5. Get Legal Help
Sometimes you need to ask for help to manage your financial responsibilities. Credit counselors, accountants, financial planners, and in some cases, lawyers can all help you manage your financial obligations legally. Depending on your situation, you can get help with tax obligations, estate planning, business obligations, debt management, and legal payments like child support.
Handling Your Financial Responsibilities Legally
Handling your financial responsibilities shouldn’t leave you feeling like you’re drowning. You also shouldn’t break the law to get back on the right track. By taking a proactive approach and understanding your options, you can regain control, protect your credit, and avoid legal complications. From restructuring debt to leveraging available resources, small steps can lead to lasting change. Before you know it you’ll have a better handle on your finances, and you’ll be doing so legally.
How do you handle your financial responsibilities legally? Let us know in the comments.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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