The best way to deal with wage garnishment is to do everything in your power to prevent it. By simply taking control over your finances, you can prevent deliqent and defaulted loans as well as any case for your creditors to initiate a wage garnishment. Apart from that, below is the list of the pointers you can consider:
- Payment Term Negotiation
You can consider having a negotiation on how you are going to pay your debts. Make sure that the payment terms are consistant with your finances, such as considering income-based payments.
- Creating A Budget
Create a monthly budget and make sure to stick to it so that you can effectively stay out of any financial trouble. You need to determine all your necessary expenses (including credit and loan payments) and all incoming income payments on a monthly basis and make a budget out of them. Also calculate any “extras” you know you will indulge in on a regular basis, such as coffee or a dinner date with your spouse. Try to also include funds to set aside to build an “emergency fund. Sticking to a budget will require self-discipline to adhere to your budget but will be beneficial in the long run for your financial health.
- Automatic Payments
You can also consider setting up automatic payments on your loan balance. As a result, your funds will be deducted automatically from the bank account on a monthly basis. Also, this kind of arrangement can help you to pay your bills on time.
- Emergency Fund
Do not make it a habit of being dependent on your credit because it can only put you into further debt. Instead, you should establish an emergency fund (include regular deposits in your monthly budget). That way if there is an unexpected expense (like car repairs) you have some or all of the money needed to pay for them and exclude – or at least limit – credit card usage.