5 signs you are heading for bankruptcy

Your credit cards balances are near their limits: If you find your credit cards are all about to hit their limit, that is a sign that something is wrong.
You have no way to save: Whether it is for a rainy day, a vacation fund, just in case, or for retirement, we all want to save money. If you find that you have to stop contributing to your retirement account, or are unable to save any money each month, that is a sign that your finances may be in trouble. Debt shouldn’t swallow up so much of your income that nothing is left for savings,

You are unable to earn enough to pay down debt: If you find yourself unable to make any meaningful dent in your balances, that is not a good sign. Credit cards can be a very useful tool. They can also spiral out of control. If you find that the minimum costs each month to maintain the balances is all you can afford, the first step is trying to lean down your monthly budget. You can also try to work overtime. If after leaning down your monthly budget or trying to add overtime you still can’t get any traction paying down debt, then you may have reached a point where it is no longer realistic to ever get out from under your debt without bankruptcy.

You forego needed items to keep up with your debt: Not going shopping as often, or not buying the newest smartphone is not a problem. Those things are all part of smart money management. If you find yourself foregoing necessary items however, such as health insurance coverage, or vehicle repairs, then there may be a problem. When you are skipping on necessities to keep up with debt, that is not a good sign.

You are taking out loans against retirement accounts or life insurance policies to stay current on debt: Raiding your retirement account to try to finally get a hold of debt is never a good idea. Retirement account loans may seem like a solution, but they come with large monthly payments that get automatically deducted right out of your pay cheque. Almost always the retirement account loan is a precursor to being right back where you were, but this time with the added problem of a large retirement account loan payment.

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