Signs of heading a bankruptcy

Signs of Bankruptcy

Every individual no matter how much he earns, might have to undergo a financial crisis at some point of time or the other. It could be due to some emergency for which one is not prepared, or it could be due to ill planning or no planning of finances.

Sometimes you may not understand that you are actually heading for a disastrous situation like “bankruptcy”.  Here are a few signs for you to know that you might reach a “bankrupt” situation.

Piles of unopened mails

Whenever you enter your house after returning from office, you see a huge pile of mails but the envelopes remain unopened. There could be important mails from the bank; phone bills or credit card bills which you need to make payment for.

Unattended reminders

Credit card companies, mobile service providers and others keep sending you reminders before taking the last step. Hence if you have been avoiding their reminders too, you’re not unintentionally inviting troubles for yourself.

Failure of last date

Mortgages and other due bills have a last day to make payments, if you cross that not once but regular then you’re heading for a disaster.

No insurance

If you have no medical insurance or disability insurance then you are not planned to handle the emergencies. In case you meet with an accident or get hospitalized these insurances will be a big support to you, otherwise you’ll have to bear the entire expenditure from your own pocket.

Loaning from one to pay the other

You’re taking one loan to meet up the other. This can be done rarely by taking personal loans to clear the old debts, but, if it becomes a recurring feature then you need to introspect and make yourself understand that this kind of a situation may lead you to bankruptcy.

Cash Crunch

Every month your cash crunch is so high that you’re not able to catch it up with. Either your planning’s are not done with a lot of thought or you’re not able to control your desires and spending money more than you can.

Hence, if you relay want to avoid devastation like “Bankruptcy” then you must start managing your finances right from the first day of your earning. There is no harm in consulting a friend or a consultant to get the correct kind of advice.