Financial Warning Signs

  1. You are unable to make routine minimum payments required for credit cards and loans. This is a sign that you are in severe financial distress; don't ignore this as it becomes a regular concern.
  2. When you examine your expenses it is determined that you have been spending much more than you earn on a regular basis. This means that you have been accumulating debt each month. Each month the debt gains interest - making the debt more expensive as you add on to it.
  3. You are over your limit or at the limit on your credit cards. To maintain a healthy financial situation, it is important to remain under 30 percent of the credit limit on your credit cards and loans. If you are teetering at the limit, unable to pay down the debt this can lead to trouble.
  4. You are unable to pay each bill every month and therefore skip bills for one to two months at a time and are facing notices for collection on a regular basis.
  5. You are not making enough money. Are you making enough money to cover your expenses each month while contributing to a savings account or an emergency fund? If not, you may be on your way to financial distress and bankruptcy.
  6. Expenses can bring panic - there are many unexpected expenses such as vehicle repairs, which may be paid from an emergency fund. For those consumers facing bankruptcy, these expenses can create stressful financial situations. Without a savings account or unused credit, an accident or repair can seem like a nightmare.
  7. You receive countless phone calls from credit agencies that are seeking payment for bills that are owed. When creditors are calling, it can be detrimental to the credit report - as collections are the worst thing that your credit report can face. If you are unable to afford these payments, then it may be time to consider bankruptcy.
  8. You are afraid to speak to your partner about money issues or avoid the topics altogether. This can be a sign of financial disarray and should not be ignored.
  9. You have no idea about all the accounts on your credit report. You are unsure about which debts are paid - or even how much you owe to creditors.
  10. You have thought about bankruptcy or were considering filing with a bankruptcy attorney. When you have had these thoughts, chances are that meeting with a bankruptcy attorney is the next logical step to, at the very least, find out what your options with regard to bankruptcy are.