5 Warning Signs You Should Be Filing for Bankruptcy
There are a number of warning signs that indicate you should file for bankruptcy. From limited savings, to creditors, loans and more; knowing the warning signs can help to save you from financial ruin.
If you are currently experiencing issues with your finances, consider reading this blog post as it highlights the warning signs that indicate you should file for bankruptcy today.
1. Limited or No Savings
If you do not have any money in savings, you may want to consider filing for bankruptcy. Limited or no savings can be an indication that you are not able to support your current lifestyle.
Not having any money remining to save for unexpected costs can have a devastating effect on a person’s life. In these situations, if an unexpected bill were to come up they may be at a loss. Rather than allow this to happen to you, consider speaking to a financial adviser who will be better able to analyze your situation and determine if bankruptcy is an option for you.
2. Using Loans to Pay Bills
Another common warning sign that you may need to consider filing for bankruptcy is if you are currently using loans to pay your bills. Using loans as a way to pay for your current financial needs can have be devastating.
If they are unable to meet the monthly payments set out in the loan they are at risk of ruining their credit further. Plus, they will likely incur additional fees in interest that increase the original cost of the loan. Ultimately, if you find yourself in this situation is best to speak to a financial advisor that can review your situation and determine a course of action that is right for you.
3. Avoiding Creditors
If you find yourself receiving phone calls, letters, or emails from creditors it may be a sign that you should apply for bankruptcy. Creditors will only begin to get in contact with debtors when their bills have been ignored. When this happens, the creditors may think that you have no intention of paying the money back. In turn, only increasing the likelihood that they will continue to contact you until they receive a repose.
4. Behind on Payments
Many people have had to deal with late payments for credit cards or bills. If you are consistently late with your payments, then it may be time to consider filing for bankruptcy. That’s because, this is often an indication that you are unable to afford the current life that you are living.
Plus, if you are consistently late on your payments you are likely paying more per month in additional fees and interest. Having to pay these fees can make it difficult for someone to catch up on their payments as they will likely need to put more towards to loan to catch up. This can be avoided when filing for bankruptcy. That’s because, filing for bankruptcy can help to free you of some of these loans and finally get the you caught up on payments.
5. Relying on Credit Cards
If you are currently relying on credit cards to fund your lifestyle, it may be time to consider filing for bankruptcy. That’s because, credit cards are essentially another form of a loan. When individuals become reliant on these cards to pay for essentials, they may find it difficult to re-pay.
If this is the current situation that you find yourself in, consider speaking to a financial advisor today about the possibility of freeing yourself of this debt by filing for bankruptcy.