It's easy to lose track of how much debt you have. Unfortunately, if this happens, you'll find it difficult to steady your situation and make informed decisions regarding your financial future.
Here are four signs that you're carrying too much debt:
- You don't know the finer details of your debt: From how much you owe to the type, you've lost track of your debt. As you add more to your debt load, it's even easier to lose track of just how bad things have become.
- Late payments: As your debt adds up, it's possible you won't have enough money to pay your bills on time. This results in late payments, which lead to late fees.
- You're hearing from bill collectors: This is a surefire sign that you have too much debt. It's also a sign that you've fallen behind on a bill.
- You've drained your savings: All the money you saved is now gone because you used it to keep up with your debt. Once your cushion is gone, your situation worsens as you don't have the money necessary to stay current with your obligations.
It's unsettling to find that you're carrying too much debt, but it's better to have full knowledge of your situation than to sit back and hope for the best.
If you've tried everything and are unable to get back on track, turn your attention to Chapter 7 bankruptcy. This allows you to eliminate many types of unsecured debt, including credit card.
There are both pros and cons of a bankruptcy filing, so it's important to fully understand your legal rights and the impact on your life before proceeding.
Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. -- Thomas C. McBride, attorney in Alexandria, LA.