There are several signs or indications that suggest that one might be headed for bankruptcy and one should take heed of such signs to prevent getting into the plight in the first place. We have noticed that all or most people who have gone through bankruptcy, had found themselves to be in many of the following situations, prior to their declaring bankruptcy:
- Credit Card Debt
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- You often tend to max out on your credit cards.
- More than once, you have been in the position of not being able to repay more than the bare minimum against your credit card balance
- You have applied for more credit cards, even though they have become costlier with higher interest rates, (naturally as your credit rating has becoming poorer)
- You buy everyday items with your credit cards, as you are unable to pay for them in cash or with debit cards.
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- No Savings – You have very little or no funds to help yourself in emergencies as you are barely able to meet your everyday expenses.
- Job Dependent – You think you cannot afford to lose your job or take sick days off beyond your leave balance available, as you might lose out on money, and might not be able to meet your daily expenses, as you have become heavily dependent/reliant on your job to survive.
- Extracting from Retirement Fund – If you manage your own superannuation fund, and have found yourself making withdrawals from it from time to time to settle some major debts, or at least such a thought has crossed your mind.
- Creditor Harassment – Your creditors keep calling you, messaging you or sending you mails, everywhere, at your home as well as workplace, making aggressive demands for repayments, but you choose to not answer them back, oftentimes just because it’s easier than otherwise.
- Impacting Other Areas of Life – Your debt problems have become so insurmountable that they are affecting your marriage, friendships, social life and job performance. Or if they overwhelm you so much that they are impacting your eating and sleeping patterns, consequently affecting your health.
If you have found yourself to be in any of the above situations, then there is a high probability that you might be on the brink of bankruptcy, and thus, should consider getting help with managing your debt, and nip the problem in it’s bud.