Debt isn’t always a bad thing. Not many people can own a home without going into debt. Many entrepreneurs take out lines of credit to start their businesses. Student loans allow people to obtain an education that opens new opportunities for their futures. However, it is very easy to allow debt to become a burden.
You may think your debt is under control because you can make all your payments on time. However, you may have constructed a house of cards that could topple when the first unexpected expense comes along. In other words, you may not realize how dangerously close to financial crisis you are living.
Is it really that bad?
When you get your paycheck, you may feel fortunate if you are able to cover all your bills and debts. However, if most of your income goes to pay your debts, how are you preparing for an emergency? How are you planning for future goals? In fact, financial advisors warn that one of the signs that your debt is out of control is if you have no money left to put into savings or to add to your emergency fund. Other signs include the following:
- You have multiple credit cards that are maxed out or over the limit.
- You use credit cards or cash advances to pay bills or buy necessary items like gas and groceries.
- You are unable to make more than the minimum payments, or you have to skip payments or make late payments some months.
- Overdrawing your checking account is not unusual for you.
- You aren’t really sure how much debt you owe.
- Creditors have recently denied your application for a new credit card.
- You feel embarrassed about your financial situation, and you lie to others about your debt.
If living paycheck to paycheck is normal for you, you may not see how easily your situation could become desperate. If you lost your job or your car broke down, would you still be able to continue paying your debts?
Maybe you are already feeling the pressure of the debt load you carry, and you are wondering how to get out from under the weight. The first step is to face the truth about your debt situation. Then, by speaking with a Texas attorney, you can learn about the options for debt relief through bankruptcy that may help you make a fresh financial start.