Coping with changes in your budget

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Every household develops their budget based on an expectation of a certain amount of income and expenses. In most cases, people experience financial difficulties when there is a change in income or expenses due to circumstances beyond their control. Many things can happen that affect income - job loss or change, elimination of overtime, loss of business income, sickness, disability, injury, pregnancy, separation, divorce, retirement or even death a spouse. On the other hand, sometimes unanticipated increases in expenses such as medical treatment and prescription costs, insurance, child care, child support, utilities, commuting expenses, mortgage increases or taxes can throw your budget out of balance.

At this point you have probably tired a number of different strategies to cope with the change in either your income or expenses. You may have tried to increase income and reduce household expenses, borrow money short term, refinance your home, use cash advances or finance basic living expenses using credit cards, or simply pay what you can and let the rest ride. If these options are no longer available or appropriate, then Chapter 7 or Chapter 13 may be your best alternative to achieve the balance you are seeking Click here for information on Chapter 7 or Chapter 13.