Signs You May Want To Consider Bankruptcy
Personal bankruptcy is never the preferred predicament to be in, however many people find relief in confronting their financial issues and starting afresh. Nobody is perfect, and people make mistakes. Yet a lot of individuals avoid filing for bankruptcy for far too long. They prefer to ignore the elephant in the room and spend years fighting just to make ends meet. Yes, bankruptcy is never satisfying and many individuals find it embarrassing, however it is the very first step towards financial freedom. Always bear in mind that there is a life after bankruptcy.
If you’re struggling financially and looking at bankruptcy, it’s relevant to acknowledge the warning signs. Here are a few signs that you’re in serious financial trouble.
Making minimum repayments only
One of the clearest signs of financial troubles is when you can only afford the minimum repayments on your loans, yet your income source isn’t increasing. Interest charges and fees will shortly force you to make a change, either by acquiring a second job or consolidating your loans. And if you don’t make a change, something must give at some time. Surely, it’s alright to have a balance on your credit card debt for a few months, but it’s useful that you think long-term. If you’re sinking in interest fees and can only afford to make the minimum repayments, it’s time to make a change.
If you’re living paycheck to paycheck and find that your savings are being used to make repayments on your loans, you’re heading for trouble. The majority of financial advisors strongly recommend having three to six months of living expenses in a separate savings account. This account should cover all of your expenses for that period of time: rent, food, petrol, bills. What would happen if you lose your job? Or you cannot work due to a health condition? And if you’re buying luxury items while you have high interest loans outstanding, you should really get your priorities straight. Without three to six months of living expenses in your savings account, personal insolvency may well become a reality.
Using credit cards to pay your bills.
Credit Cards are a handy way to purchase items by giving yourself a short-term loan, especially in today’s cashless society. Normally, there is an interest-free period of a month or two, but after this time, the interest rates and charges are incredibly high. If you find yourself using credit cards to pay for bills given that you simply don’t have enough funds, you’re on the brink of disaster. Some people will even have various credit cards so they can pay off one with another. This is a key sign that you’re heading for personal bankruptcy. Credit cards can be considerably destructive if used incorrectly. Paying bills with debt only creates more debt, with big interest charges added on. If this sounds familiar, seek professional advice immediately.
Debt collectors are calling you
It may appear obvious, but if debt collectors are regularly hassling you on the phone or in the mail, you should consider bankruptcy help. Think of it this way; creditors who feel that they aren’t able to recover their loan from you will sell your debt at a discounted rate to debt collectors. If creditors have lost faith in your ability to pay your bills, there is most certainly a problem. If you’re frightened to answer the phone or check your mail due to debt collectors, it’s time to act. You can only neglect those threatening phone calls and letters for so long before your quality of life begins to disintegrate. Pick up the phone and call the specialists, that’s what they’re there for.
Are you so troubled about your financial future that you can’t sleep at night? This is perhaps the biggest warning sign that you’re heading for bankruptcy. When your health and happiness are disintegrating due to your financial situation, it’s time to accept that you need help simply to improve your quality of life. Bankruptcy is not the end of the world, and is, in truth, the first step towards financial freedom. Talk with a bankruptcy expert to find out what options you have.
If you’re encountering any of the above warning signs, chances are that you’re presently in financial distress and are heading towards bankruptcy if changes aren’t made. Personal insolvency is the final step in a long process, and normally there are options before you need file for bankruptcy. To find out what options you have, or to speak with someone about your situation, contact Bankruptcy Experts Tablelands on 1300 795 575 or visit http://www.bankruptcyexpertstablelands.com.au