No matter what happens with your job and income, your bills will continue rolling in each month, and your creditors will expect to get paid. If it gets harder to pay your bills each month, you might want to consider filing bankruptcy at some point. Here are some signs that should alert you to consider evaluating bankruptcy as an option for finding debt relief.
You Use Your Credit Cards to Survive
There are many warning signs that should alert you of financial troubles, and one is when you begin using your credit cards to survive. Credit cards are great to have for big purchases or emergency expenses, but when you use them to buy gas, food, and basic necessities of life, it could mean financial danger.
You've Maxed Out Your Credit Cards
In addition to using your credit cards for normal things you need for survival, you should examine your balances. Are your credit cards maxed out? Are you paying fees for going over the limit, and are you paying late fees and extra interest charges? These are all signs of financial problems that you should take seriously.
You've Turned to Payday Loans
Payday loans often seem like a good solution when you experience a hardship and need cash quickly, but taking these loans can lead to a debt trap that is almost impossible for many people to get out of. If you currently owe money to payday lenders and cannot repay the money, you should probably seek help for your finances quickly.
Each time you take out a payday loan and cannot repay it by the due date, the lender will offer to roll it over. When this happens, the lender charges additional fees and interest. This process makes it very difficult to ever repay a payday loan, even if the loan was not a large amount.
You Ignore Phone Calls Because Creditors Keep Calling
Another warning sign you should not ignore is the phone calls. When your phone rings, are you hesitant to even look to see who it is? If so, this is probably because you receive so many calls from creditors each day that you no longer want to even see who is calling.
Creditors will not stop calling you if you owe money, unless you pay the bills in full. If you have no money to pay these accounts, you should continue to expect these phone calls each day.
In addition to phone calls, receiving late notices on debts is another sign of financial distress. You could choose to ignore these letters by not opening them up; however, this will not make the debts disappear. At some point, you will need to address the problem if you want to solve it.
You Cannot Pay the Minimum Payments
One other sign you should take seriously involves the amount of money you pay on your debts each month. If you pay only the minimum payments and cannot afford any more than this, you should consider seeking help. If you cannot even pay the minimum balances owed, your financial troubles might be worse than you think.
When you have more money going out than coming in each month, you will experience financial problems, and these problems will not go away on their own. Getting help from a bankruptcy lawyer is a great option because it will help you determine your options and rights.
Many people ignore these signs and end up with even further financial problems. Don't wait too long. Contact W. Mack Rice, P.A. Attorney at Law. We can help you through your difficult time by offering expert advice and help for your situation.