Perhaps your finances aren’t perfect, but that doesn’t necessarily mean you’re headed for bankruptcy—right? While having room to grow doesn’t mean you’re in trouble, there are some signs that are very worrisome. If you identify with one or more of the items on this list, it might be time to take a hard look at your finances and think about whether or not your debt is truly manageable.
If you’re considering bankruptcy, talking to an attorney sooner rather than later can help you decide which path is best for you. Call Padgett & Robertson at 251-336-3695 to get started.
You Don’t Have a Budget
If you don’t know how much you’re earning or spending each month, that is a big issue. Without these very basic numbers, you have no way of knowing whether or not your spending is sustainable. If you tend to go with the flow, this is your sign to create a basic budget.
You Are Unprepared for Emergencies
Would you be able to pay for a flat tire, emergency room copay, or emergency vet care for your pet? If you’d have to turn to a nearly maxed credit card to cover these expenses, you might be in trouble. A small emergency fund can be enough to keep you from taking on more debt, so if you don’t have that, you could be paving the way for even more debt.
You Spend More Than You Bring In
When you look at your budget, how much extra money do you have each month? If your answer is a negative number, that’s a problem. It might seem like a small concern if you’re only short $50 or $100 per pay period but think about how quickly that adds up when you put it on a credit card. In six months, you could have an additional $600 to $1200 in debt—all of which is accruing interest on a monthly basis.
Consider, too, that putting basic expenses on a credit card can damage your relationship with debt and money. When people are already putting necessary expenses on a credit card, it’s often not that much harder to go ahead and put unnecessary luxury items on the card, too.
You Skimp on Necessary Expenditures
Medical checkups, dental work, car repairs, and home repairs are all necessary parts of a budget. If you don’t follow recommended medical care or maintenance schedules, you could be doing a serious disservice to your health and safety.
For many, the primary reason to put off these appointments is money. You never know when a $100 oil change and car inspection will uncover a $1000 problem or when a basic dental checkup will discover a root canal that needs to be redone. Some people find it less stressful to skip out on these appointments entirely, rather than risk finding out about necessary care that they cannot afford.
You Never Have Fun—Or It’s All You Do
There should be room in everyone’s life for little luxuries and treats. This depends entirely on your budget, income, and debt. For some people, a suitable amount of fun might be coffee out a couple of times per week and a move with friends every two weeks. For others, fun might be three family vacations per year.
If you can’t remember the last time you treated yourself, your budget may be stretched so thin by debt that you aren’t able to meet your own needs. On the flip side, it’s also not good if you’re constantly having fun and going out when your finances are in disarray. This often points to excess credit card usage.
Money is Constantly on Your Mind
Do you wake up in the morning thinking about money and end the day with a sinking feeling about upcoming bills? If money is your number one concern, you may be in an unsustainable financial situation.
Is Bankruptcy the Right Choice for You? Find Out Now
Bankruptcy may be able to give you the peace of mind and fresh start you need. Let’s talk about your finances and which options work best for you. Give us a call at 251-336-3695 or to have someone contact you.