March 29, 2017 0

Signs You May Want To Consider Bankruptcy

Posted by:Charles Bosse onMarch 29, 2017

Personal bankruptcy is never the ideal position to be in, however lots of individuals find relief in confronting their financial issues and starting over. No one is perfect, and people make mistakes. Yet a lot of people hold off filing for bankruptcy for far too long. They would prefer to ignore the elephant in the room and spend many years battling just to make ends meet. Yes, bankruptcy is never pleasing and lots of people find it embarrassing, nevertheless it is the very first step towards financial freedom. Always remember that there is a life after bankruptcy.

If you’re struggling financially and contemplating bankruptcy, it’s useful to acknowledge 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 complications is when you can only afford the minimum repayments on your loans, yet your income source isn’t increasing. Interest charges and fees will soon force you to make a change, either by acquiring a second job or consolidating your loans. And if you don’t make a change, something must give at some time. Surely, it’s alright to have a balance on your credit card debt for a few months, but it’s important that you think long-term. If you’re sinking in interest charges and can only afford to make the minimum repayments, it’s time to make a change.

No savings

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 experts advise having three to six months of living expenses in a dedicated bank account. This account should cover all your expenses for that period: rent, meals, petrol, bills. What would happen if you lose your job? Or you can’t work because of sickness? And if you’re buying luxury items while you have high interest loans overdue, you should really get your priorities straight. Without three to six months of living expenses in your savings account, personal insolvency may well become a reality.

Using credit cards to pay your bills.

Credit Cards are a helpful way to pay for items by giving yourself a short-term loan, especially in today’s cashless society. Often, there is an interest-free period of a month or two, but after this time, the interest rates and charges are particularly high. If you are using credit cards to pay for bills due to the fact that you simply don’t have enough money, you’re on the brink of disaster. Some people will even have a couple of credit cards so they can pay off one with another. This is a key sign that you’re steering towards personal bankruptcy. Credit cards can be very destructive if used improperly. Paying bills with debt only brings about more debt, with big interest charges added on. If this sounds familiar, seek professional advice asap.

Debt collectors are calling you

It may seem obvious, but if debt collectors are invariably hassling you on the phone or in the mail, you should contemplate bankruptcy help. Consider it this way; creditors who conclude that they aren’t able to recover their money from you will sell your debt at a discounted rate to debt collectors. If lenders have lost faith in your capacity to pay your bills, there is definitely a problem. If you’re scared to answer the phone or open your mail because of debt collectors, it’s time to take action. You can only overlook those threatening phone calls and letters for so long before your quality of life starts to diminish. Pick up the phone and call the specialists, that’s what they’re there for.

Losing sleep

Are you so concerned about your financial future that you can’t sleep at night? This is perhaps the most significant warning sign that you’re heading for bankruptcy. When your health and happiness are disintegrating as a result of your financial circumstances, it’s time to realise that you need help simply to improve your quality of life. Bankruptcy is not the end of the world, and is, literally, the first step towards financial freedom. Consult with a bankruptcy expert to identify what options you have.

If you’re experiencing any of these warning signs, chances are that you’re presently in financial trouble and are heading towards bankruptcy if changes aren’t made. Personal insolvency is the final step in a long process, and commonly there are options before you need file for bankruptcy. To find out what options you have, or to talk with someone about your financial condition, contact Fresh Start Solutions Sydney on 1300 818 575 or visit


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