Personal bankruptcy is never the ideal predicament to be in, however many individuals find relief in addressing their financial troubles and starting afresh. No one is perfect, and people make mistakes. Yet too many men and women hold off filing for bankruptcy for far too long. They choose to ignore the elephant in the room and spend many years battling just to make ends meet. Yes, bankruptcy is never pleasurable and lots of people find it humiliating, nevertheless it is the very first step towards financial freedom. Always remember that there is a life after bankruptcy.

If you’re struggling financially and looking into bankruptcy, it’s relevant to understand the warning signs. Here are a few signs that you’re in serious financial hardship.

Making minimum repayments only

One of the clearest signs of financial difficulties is when you can only afford the minimum repayments on your loans, yet your income isn’t increasing. Interest charges and fees will quickly force you to make a change, either by finding a second job or consolidating your loans. And if you don’t make a change, something must give at some point. Needless to say, it’s alright to have a balance on your credit card debt for a few months, but it’s critical that you think long-term. If you’re drowning in interest charges and can only afford to make the minimum repayments, it’s time to make a change.

No savings

If you’re living paycheck to paycheck and find that your savings are being used to make repayments on your loans, you’re heading for trouble. A large number of financial experts advise having three to six months of living expenses in a dedicated bank account. This account should cover all your expenses for that period: rent, meals, petrol, bills. What would happen if you lose your job? Or you cannot work because of a health condition? And if you’re purchasing luxury items while you have high interest loans overdue, you should really get your priorities straight. Without having three to six months of living expenses in your bank account, personal insolvency may well become a reality.

Using credit cards to pay your bills.

Credit Cards are a helpful way to buy items by giving yourself a short-term loan, especially in today’s cashless society. Often, there is an interest-free period of a month or two, but after this time, the interest rates and charges are very high. If you find yourself using credit cards to pay for bills since you simply don’t have enough savings, you’re on the brink of disaster. Some people will even have various credit cards so they can pay off one with another. This is a key sign that you’re steering towards personal bankruptcy. Credit cards can be very harmful if used incorrectly. Paying bills with debt only brings about more debt, with big interest charges added on. If this sounds familiar, seek professional advice as soon as possible.

Debt collectors are contacting you

It may appear to be obvious, but if debt collectors are frequently hassling you on the phone or in the mail, you should think of bankruptcy help. Think of it this way; creditors who conclude that they can’t recuperate their money from you will sell your debt at a lower rate to debt collectors. If lenders have lost faith in your capacity to pay your bills, there is undeniably a problem. If you’re afraid to answer the phone or open your mail due to debt collectors, it’s time to act. You can only avoid those threatening phone calls and letters for so long before your quality of life begins to languish. Pick up the phone and call the specialists, that’s what they’re there for.

Losing sleep

Are you so troubled about your financial future that you can’t sleep at night? This is possibly the most significant warning sign that you’re moving towards bankruptcy. When your health and happiness are declining because of your financial situation, it’s time to accept that you need help simply to improve your quality of life. Bankruptcy is not the end of the world, and is, in truth, the first step towards financial freedom. Consult with a bankruptcy expert to find out what options you have.

If you’re encountering any of these warning signs, chances are that you’re presently in financial hardship and are heading towards bankruptcy if changes aren’t made. Personal insolvency is the final step in a long process, and usually there are options before you need file for bankruptcy. To find out what options you have, or to talk to someone about your circumstances, contact Bankruptcy Experts Hervey Bay, on 1300 795 575 or visit