There’s nothing like the feeling of reviewing your finances and realizing there are major discrepancies, particularly when it comes to how much you make and the amount of bills you have to pay. Stress over finances can be tough on the mind and spirit, leaving many feeling overwhelmed and as if there is no hope for a sturdy financial future. However, bankruptcy can be a useful tool, and you may consider filing for bankruptcy if any of the following five signs apply:
#1 You cannot meet minimum monthly payments.
If your monthly bills are being racked up on credit cards, you may be headed towards a severe financial situation that must not be ignored or delayed. Before filing for bankruptcy, it can be helpful to take financial classes and implement good spending habits too.
#2 You spend more than your earnings.
If you notice that you are incurring more debt each month and you’ve reduced your spending to essentials, you may be a candidate for bankruptcy. When debts vastly outweigh what we earn, it can be difficult to get out of a financial hole.
#3 There are some bills you have to skip each month.
No one should have to choose what bills they can or cannot pay for each month. The stress may be too much to bear, and in this case bankruptcy may prove to be a useful option.
#4 You aren’t going to make more money anytime soon.
There are periods where we may go through a financial rut. But that doesn’t mean we should immediately turn to bankruptcy. If after a realistic assessment and determining the chances of earning more in the near future are low, then filing for bankruptcy may be a sound choice.
#5 You are constantly dealing with creditors.
There are few things more annoying than being constantly pestered about your debts by creditors. It’s hard to forget about steep debts, and receiving incessant calls or letters in the mail can make someone feel out of control of their own life. In this situation, filing for bankruptcy may be the right path.