Signs You’re Having Financial Difficulties

Should You Consider Filing for Personal Bankruptcy?
Many Chicago consumers don’t realize they’re financially overextending themselves until it’s too late. Indeed, according to a recent article in Huffington Post, “you may think you’re managing your debt, but in reality your debt is managing you.” And when you don’t manage your money properly, you could be setting yourself up for a serious financial quandary. For some of us, consumer bankruptcy may turn out to be the best solution.
In some cases, consumers may be able to make adjustments to their spending habits in order to get back on track. However, many Illinoisans already have done a significant amount of damage to their finances. In such situations, an unexpected financial event—such as a costly hospital visit or an automobile repair—could end up leading to insolvency. For debtors with bills that they simply cannot pay, filing for personal bankruptcy may be able to help ease the anxieties associated with piling payments.
Tell-Tale Signs You’re Overextending Yourself
How can you know if you’re mismanaging your finances? The Huffington Post article suggests that there are a number of “tell-tale signs that you need to make some serious financial adjustments.” Let’s take a look:
  • You’re using your credit cards to pay for “daily essentials” like groceries and gas without making payment in full. While many credit card companies provide extra points or savings for using your card at the pump, it’s only worth it if you’re going to pay the amount back in full. You shouldn’t be relying on credit cards to buy essential items for daily living. To be sure, credit cards simply aren’t “meant to supplement your regular income.”
  • You’re carrying debt on maxed-out credit cards. Are you charging purchases on credit cards but failing to pay them off each month? You’re probably not alone, but that doesn’t mean it’s a good thing. The Foundation for Credit Counseling reported that approximately one-third of all Americans carry credit card debt each month, “but this habit is like setting up dominoes; eventually everything is going to collapse.” This is particularly true if you’ve maxed out the credit cards on which you’re carrying debt and only making minimum payments. In all likelihood, if you keep going at this pace, you simply will not pay off that debt.
  • You’re relying on multiple lines of credit. If you’re using credit from one account to make payments on other debts, you’re going to find yourself in a serious financial predicament. In short, you won’t be able to get a handle on your debt if your solution is to open another line of credit or to increase your current credit limits.
  • You’re dipping significantly into your savings account(s). If you’re acquiring more debt while your savings accounts continue to shrink, you won’t have any money left to help you get through an unexpected financial jam.
  • You’re having trouble making monthly payments. One of the most obvious signs that you may need to consider personal bankruptcy is that you’re having difficulty—and are feeling anxiety about—paying your monthly bills.
If you have concerns about your current finances and are wondering if Chapter 7 or Chapter 13 bankruptcy might be a potential solution, you should speak with an experienced Oak Park bankruptcy lawyer today.
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