- You're Too Caught Up in the Moment
- You're Digging Yourself Into Debt
- You Have No Safety Net or Backup Plans
You go where the wind takes you and enjoy the ride the whole way. You might be fun and exciting to hang around, but financially, you're headed for trouble. Bankruptcy filings can often be the result of not preparing for the unexpected. Impulse shopping, careless spending, and extravagance are signs that you might be too focused on the present.
You're neck deep in debt and a foot away from bankruptcy. Filing for bankruptcy is simply the result of not being able to afford your debts. The best way to avoid this problem is to catch it early. While eliminating debt is often a solution, a better alternative is avoiding debt in the first place. And if you've managed to master the art of screening phone calls and mail from creditors, it is time to get serious. Consider an extra job or working more hours to start paying off those debts. The sooner you catch yourself in debt, the more time you have to avoid filing for bankruptcy.
Medical problems and job loss are two common surprises that can unfortunately lead to personal bankruptcy. These events can snowball into serious problems and aren't that tough to avoid. Step out of the moment and start thinking about your future. Could you afford thousands in medical bills? What would happen if you lost your job? Look at your options if some financial disaster were to strike. Would you be able to find work? Do you have proper medical insurance? What's going to happen when you max out all your credit cards and can't get any new accounts?
Remember, the title of this article is "3 Troubling Signs That You Could Be Headed For Bankruptcy", not "A Bankruptcy Checklist". While the signs are troubling, there are still steps you can take to avoid bankruptcy. Getting health insurance and putting some emergency funds aside are small actions that can prevent big pain. The best thing you can do is to address these problems early on and make some serious changes. By spotting these warning signs ahead of time, you just might be able to take that last detour and avoid having to deal with personal bankruptcy.
Consumer Affairs - Medical Bills Leading Cause of Bankruptcy
About the Author:
Heindrick So works for a Bay Area Real Estate company that specializes in residential wholesale lending. His work experience is comprised mostly of sales and marketing background which included a high end media sales position at Magnolia Hi-fi. Heindrick is also in his final year of pursuing his Bachelor's Degree in Electrical Engineering at San Jose State University.
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