Bankruptcy Port Macquarie
Personal bankruptcy is never the preferred position to be in, however lots of individuals find relief in dealing with their financial troubles and starting afresh. Nobody is perfect, and people make mistakes. But a lot of people hold off filing for bankruptcy for far too long. They choose to ignore the elephant in the room and spend many years struggling just to make ends meet. Yes, bankruptcy is never pleasurable and lots of people find it humiliating, nevertheless it is the very first step towards financial freedom. Always keep in mind that there is a life after bankruptcy.
If you’re struggling financially and looking at bankruptcy, it’s important to understand the warning signs. Here are a number of signs that you’re in serious financial hardship.
Making minimum repayments only
One of the clearest signs of financial problems is when you can only afford the minimum repayments on your loans, yet your salary isn’t increasing. Interest charges and fees will soon force you to make a change, either by finding a second job or consolidating your loans. And if you don’t make a change, something must give at some time. Obviously, 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 drowning in interest charges 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. A large number of financial advisors highly recommend having three to six months of living expenses in a separate savings account. This account should cover all your expenses for that period: rent, food, petrol, bills. What happens if you lose your job? Or cannot work because of sickness? And if you’re purchasing luxury items while you have high interest loans remaining, you should really get your priorities straight. Without three to six months of living expenses in your bank account, personal insolvency may well become a reality.
Using credit cards to pay your bills.
Credit Cards are a comfortable way to pay for items by giving yourself a short-term loan, especially in today’s cashless world. Usually, there is an interest-free period of a month or two, but after this time, the interest rates and fees are extremely high. If you end up 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 several credit cards so they can repay one with another. This is a key sign that you’re steering towards personal bankruptcy. Credit cards can be really destructive if used incorrectly. Paying bills with debt only leads to more debt, with big interest charges added on. If this sounds familiar, seek professional advice immediately.
Debt collectors are calling you
It may seem obvious, but if debt collectors are frequently harassing you on the phone or in the mail, you should think of bankruptcy help. Imagine it this way; creditors who conclude that they can’t recover their loan from you will sell your debt at a discounted rate to debt collectors. If lenders have lost faith in your capability to pay your bills, there is unquestionably a problem. If you’re afraid to answer the phone or open your mail as a result of debt collectors, it’s time to act. You can only dismiss those threatening phone calls and letters for so long before your quality of life starts to languish. Pick up the phone and call the experts, that’s what they’re there for.
Are you so concerned about your financial future that you can’t sleep at night? This is most probably the biggest warning sign that you’re moving towards bankruptcy. When your health and happiness are diminishing due to your financial predicament, it’s time to recognise 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. Speak to a bankruptcy expert to discover what options you have.
If you’re encountering any of the above warning signs, chances are that you’re currently in financial calamity 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 talk with someone about your circumstances, contact Bankruptcy Experts Port Macquarie on 1300 795 575 or visit http://www.bankruptcyexpertsportmacquarie.com.au