No matter how financially stable you are right now, there’s a great chance that you’ll go bankrupt in a few years (or months) if you don’t know how to manage your resources. Going bankrupt isn’t a pretty proposition. Other than your resources being drained, your emotional health may be affected as well.
The adage “prevention is always better than cure” has always been true, especially when it comes to finances. Spot the sign of a looming bankruptcy before it happens. Here are some signs you need to watch out for, as specified by Salt Lake City bankruptcy attorneys.
Delayed Bill Payments
If you keep delaying your debt and bill payments, they’ll accumulate until it will become impossible for you to pay them. What’s worse is that you will have to shoulder the interests. It’s not always an issue about money; it’s about your habit and willingness. Remember that you have the choice to make minimum payments and you can always have your payment terms changed to accommodate your current financial standing.
Spending More Than You Earn
If you spend more than you earn, your cash outflow becomes a problem. This is because your monthly income cannot support or sustain your expenses. Things get worse when you use your credit card to buy things instead of creating a solid budget and relying on it. If you keep on doing this, you’ll end up not having enough savings and shouldering debts.
It’s a golden rule that your savings should be equivalent to your salary multiplied by six months. You can make some adjustments, but what’s more important is that your savings are enough to support you in case you lose your job. If you lose your job and your savings are not enough and you can’t find a new job as soon as possible, chances are you’ll rely on loans to support yourself. If you don’t manage this properly, you’ll be heading for bankruptcy sooner than you expect.
These are just some of the obvious signs of a looming bankruptcy. Foolproof your future by creating a sustainable financial plan. You can also start investing and working with a reliable financial consultant.