Is It Okay To Go Over Budget? Hint: The Answer Is Yes

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Families love a good budget. Okay, they don’t love them, but, sadly, money is an option for the average household. So, to make sure they don’t end up in the red, people create a budget. Whether it’s to renovate a tired home or stock up on appliances, they stick to it religiously. But, is it necessary? Is going over budget as bad as it appears? The answer is no. Lots of families overspend and don’t have to file for bankruptcy, and here’s why.


There Is Good Debt


For some people, this fact is hard to accept. Like the majority of us, you will think of all debt as bad. Let’s face it; no one likes a credit card bill or a bank loan hanging over their head. However, these are examples of bad debt because they tend to fund unnecessary purchases. As shows, people tend to put a downpayment on a car or a vacation. These are things that have no resale value in the future and aren’t worth the financial burden. A mortgage, on the other hand, is different. Although the debt is large, it is payable over a long time. Plus, houses increase in value over time leaving you with a valuable asset.


Backup Plans Do Exist


Should the worst happen, you could declare bankruptcy and destroy your credit rating? But, this isn’t the end of the world as there are ways to bounce back. To begin with, credit repair can help you find a partner who specializes in bad credit. Not only will they repair your score, but the professionals can build it back up to the top. Secondly, bankruptcy isn’t as bad as you might imagine. Filing for a Chapter 7 with unsecured debts is a simple way to wipe the slate clean. Your credit score will get hurt, but it is repairable. If this scenario is out of the question, a family loan could be the answer. Remember that where there is a will, there is a way.


It’s Manageable


When you read posts that tell you never to go over budget, they assume the worst. For the most part, they say how it will escalate out of control and you’ll be homeless within a couple of months. The truth is that this rarely happens. Yes, it is a possibility if you go way over budget and don’t remedy the situation. However, the average person will take action once they realize there’s a problem. Even if it goes to court, the repercussions are usually a small fine and a payment plan. By being proactive, the debt you will incur won’t be hard to manage.


Going over your budget might make you uncomfortable, which is fine. Having kids means you never want to put their future at risk, no matter how short the odds are. Ultimately, this post is here to show you that if you are savvy and organized, overspending isn’t the end of the world. It might transform your lifestyle.

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