Bankruptcy Red Flags
by: Tom Tessin

Whether you’re eighteen or you’re fifty, you’ll learn something new about the financial world every day.  The thing is that when you’re usually younger, you’re not going to know as much as your elders.  This is why it’s important that you take every piece of advice you can especially if it’s coming from someone older than you and it has to deal with money.

The thing that most people dread the most is falling into that debt hole.  A hole where you can never dig yourself out of, which then leads you to that awful word no one wants to hear, bankruptcy.  Bankruptcy can play a huge factor on anyone’s life.  You can kiss getting loans, creditability and just about anything else from a lender for the next seven years.  Even after the seven years, you’re going to have to prove to them that you’re willing to pay off your bills.  Below are a few red flags that may head you toward bankruptcy.

You income isn’t consistent

If you’re the type that bounces from job to job or you just don’t have a job, this is a bad sign already especially if you have bills.  If you’re still staying at home or you don’t have that many bills, this shouldn’t be a problem.  The reason why an income is so important is that it pays off your bills.  If you don’t know how much you’re going to make each month, this is going to make it really hard for you to plan your spending.  A lot of people sometimes spend too much hoping their income will pay it off.  A lot of the times they are wrong.  Make sure that you hold a steady job.

Pay attention to your spending

Are you the type that just goes into a store and just throws everything on a credit card and doesn’t think twice about it?  If so, you’re looking forward to a very hurtful path.  A lot of people just assume that a piece of plastic isn’t cash.  They spend until their card isn’t accepted anymore.  If you find yourself getting into this bind, make sure that you stick to a debit card.  If you still want to use your credit card, that’s fine but make sure that you track your spending and that you have enough each month to pay off your bill.

Stop living a life you can’t afford

A lot of people love to buy things to make other’s think that they’re rich.  If you have this mindset, stop thinking this way right now.  No one cares if you drive a BMW or you have a ten thousand square foot house.  If you want to live that life, be motivated and start working for it, don’t start spending your credit card until it maxes out.  Stress is going to haunt you in the long run.  Only buy what you can afford, it will save you.
If you’re reading these and you’re nodding your head and saying to yourself, “wow, I do a lot of this”, then you should either seek financial advice or really change your ways especially if you’re young.  It’s important that you don’t ruin your financial future.  Be wise and good things will happen to you.