Signs That Show You Are Heading Toward Bankruptcy

An Empty WalletNo one wants to go bankrupt. Bankruptcy has negative implications, but it also has some benefits. In some cases, the only way you can get relief is by declaring bankruptcy.

 

Osmond Law presents Here are some signs that say you are in deep financial trouble and you need the help of a bankruptcy lawyer in South Jordan.

Not Enough or No Savings

You should have some money set aside that will be enough to cover your living expenses for 3 to 6 months. In case you lose your job, you must have enough money to cover your rent or mortgage payments, food, and utility bills for a few months.

High Credit Card Balances

According to the AICCCA, you should avoid maintaining credit balances that exceed 10% of your yearly income. Otherwise, you will put yourself at risk of defaulting on your monthly payments. The bigger your credit card bill grows, the more difficult it is to pay.

Making Minimal Payments on Your Card Bills

If you pay only the minimum required payment on your credit card bills, you will be in debt for a very long time. During hard times, it is alright to carry a significant balance on your account. But, if you are in a tight situation that all you can afford to pay is the smallest amount allowed, you may be facing financial disaster.

Using Credit Card to Buy Everyday Items

A credit card is a good for buying expensive items. This will work if you can pay your bills within a short period. But, if you’re using a credit card to buy your daily essentials like medications and groceries, then it can be a sign that you are living beyond your means. You are at high risk of going bankrupt.

 

These are only a few signs that may tell you that you may be heading toward a financial collapse. You have to find ways to plan your financial future.