In life it would be great to be able to foresee problems or disasters before they occur. Many times it is simply a matter of knowledge or experience that can alert us to see the bumps and pitfalls ahead in the road. More often than not people don’t realize they are in dire straits financially until it is too late. They don’t recognize the “red flags” that can warn us that financial crisis is looming. Here are a few of the “red flags” that are an indication you may be in financial difficulty:
• Having to Rob Peter to pay Paul – This is a phrase referring to taking money from one source to pay another. Taking a cash advance on your credit card to pay another bill. If you rob Peter to pay Paul, you are temporarily solving one problem but are really perpetuating your debt.
• You are only paying the minimum amount to each creditor. Minimum payments extend your debt as they pay the interest only, but don’t allow you to see the light at the end of the tunnel.
• Constantly behind on your bills and just can’t seem to catch up.
• Using pay day loans to pay bills and living expenses.
• Creditors sending second reminders, collection notices or threatening further actions.
• Charging more on your credit than you repay each month.
• You are unsure of exactly how much you owe to your creditors.
• You’re spending more than you earn.
• You are worried about paying your bills monthly, answering your phone or even opening your mail.
• You are living in overdraft every month.
If you’re struggling with red flags in your life, or you are at the point where you have too many red flags, just remember you are not alone when it comes to having financial difficulty, call us at Hoyes Michalos to set up a free consultation to go over your options and get a plan for the future, so you can get a fresh start. Call us at 310-PLAN or 519-250-8060.
Comments on this entry are closed.