When people go through money problems, they use traditional methods such as cutting expenses and using their savings. Granted, the present-day economy isn’t perfect, and it’s reasonable to pay late every once in a while.
It does raise red flags if this is recurring since you might be dealing with a possible bankruptcy case. Since prevention is key, let’s take a look at the early warning signs.
You’re late on payments more for more than 30 days.
This is where you have to be realistic and identify the cause of your financial struggles. Ask yourself if you’re overspending or need a job with a salary that matches your lifestyle. It may even be something minor that can be easily corrected.
You’re using your credit cards too much.
Low income is the reason why people take the buy now, finance later route without thinking about how they will pay it back. Keep in mind that it’s meant to be a temporary solution, and using this method frequently will result in long-term problems. If you find yourself covering basic needs such as groceries with a credit card, it’s time to take a step back.
You’re not paying enough.
Interests escalate with time, so you should pay more than the minimum every other time or fall behind due to the increasing monthly credit card bill. Your goal is to erase that debt as quickly as possible.
Your salary has reduced.
Pay cuts, emergencies, and other unexpected events that are beyond your control happen all the time. Please don’t put off seeking help before it’s too late. You’ll probably want to cancel that magazine subscription or stick to generic brands when shopping at the grocery store until your financial situation improves. The smallest details can save you money in the long run.
Bankruptcy is a decision that gives you the relief you deserve. If you aren’t sure that bankruptcy is a decision that you want to make, don’t worry that you didn’t try every avenue, Erika Luna can review your debt settlement and debt consolidation as well.
If you need an experienced bankruptcy lawyer in the Los Angeles or Orange County area, give Erika Luna a call today for a free consultation.