We're already six months into 2010 and many of us are starting to conduct our mid-year evaluations. Have you met your New Year's financial resolutions/goals? Are you even trying? Or, are you, like many other debtors, living the type of lifestyle that could put you on the road to bankruptcy? Below are a few signs that you may be on the road to bankruptcy:
- You don't have a budget. Debtors who don't have budgets usually don't know how much money is coming in and most importantly how much is going out. Living your life without a budget is much like going to sail in the ocean without a map. Failure to have a budget will definitely put you on the road to bankruptcy.
- You debt isn't getting smaller each month, in fact it is getting bigger. If you notice that your debt load has increased since we rang in the New Year, then you are probably already on the road to bankruptcy. Eventually you will not be able to maintain payments on your growing debt and creditors will begin to refuse you new credit and may even pull back on existing credit access.
- Your home and/or car is very expensive and requires a large percentage of your income. As we have learned since the recession, having too much house (or car) can put even the most diligent of us onto the road to bankruptcy. Many debtors find that their secured loan payments get out of control and they simply cannot maintain them especially in the times of crises. Savvy debtors scale back on their secured debt so that they can thrive financially and avoid bankruptcy if possible.