While the majority of Clearwater bankruptcy cases are not brought about by simple mismanagement of funds, the truth is we all could learn to make smarter decisions with our money. Whether you are looking to actively increase your money management skills or working to avoid the need for a bankruptcy down the road, the trick is knowing the signs of an impending financial hardship.
Keeping An Eye Out
Money management is an active process, and one that takes time and effort. For many people, their finances are on the backburner until a problem arises. The trouble is, when that happens, it can often be too late. Some signs you may be headed for financial trouble or difficulty managing your debts are:
- You don’t have any money left over before payday.
- You’re charging more on your credit card each month than you are paying.
- You need your credit limit increased.
- You’re running away from creditors because you can’t pay.
- You buy impulsively.
As the old saying goes, cash really is king. Don’t underestimate the ability of a credit debt to spin out of control, especially if you lose your job or ability to earn income. Having a back up fund for emergencies, keeping your debt balances below 40% of your limit and using cash to cover purchases as often as possible are some simple strategies to avoid financial insolvency.