Overwhelmed with Debt?
You probably would not be reading this if you did not know you were in trouble. However, knowing the signs which indicate you are in need of professional help should confirm that your decision to explore your options, including eliminating your debt through bankruptcy, is justified.
Here are some sure-fire signs that you might be drowning in debt.
- You can only afford to make minimum payments on your credit card bills. Most of that payment is interest. You have come to realize that it will probably take you decades to pay your credit card debts.
- You pay off one card or creditor by borrowing from, or taking a cash advance against, another. Borrowing from Peter to pay Paul will only create more debt in the end. And cash advances are much more expensive than other credit card debt. Low interest rate offers for cash advances are very much like a drug pusher offering a free fix to a soon to be addict.
- You are maxed out — or over the limit – on one or more credit card accounts. Most credit card companies will increase your interest rate and penalize you with additional fees if you go over your credit limit.
- You never pay off your entire credit card debt. You strategize about who gets paid each month.
- You put day-to-day expenses on credit. You are charging necessities such as your groceries and gas.
- You have to earmark more and more of your income for debt repayment. Professionals suggest that you should be spending no more than 20 percent of your monthly income on repaying debts (not counting your mortgage or rent payments). If, for example, you spend $1,000 per month on debt repayment and your monthly income is $3,000, you’re spending more than 33 percent of your income on debt repayment. That’s way too much.
- You often pay your bills late. Everyone comes up short occasionally. But you have to triage your bills every month.
- You have insufficient emergency reserves to cover a financial setback. You live paycheck to paycheck, and your savings have long since disappeared.
- You find yourself fumbling to find a credit card that works and writing post-dated checks until your next pay-check arrives. You never know which card will be declined or which check will bounce.
- You apply for new credit cards with low introductory rates, and transfer your debts to them. This can be a short-term solution, but eventually, the debt will catch up to you. Plus there may be a fee for transferring your debts. And after the introductory period, the interest rates can skyrocket.
- Bill collectors are calling and you screen all of your calls.
- You don’t know — and don’t want to know — how much money you owe. You avoid the mailman. As for actually opening the bills – forget it.
- When the door bell rings, you turn off the T.V. and the lights while pulling the blinds back slightly to see if you recognize a process server. The most effective process servers are using disguises.
- You lie about your debts. You may still be keeping the truth from your spouse.
If any of these statements applies to you, it’s time to take control now.
Perhaps you are still current with your debts but you recognize that you cannot keep juggling the many demands on a shrinking pay-check.
Call 480-755-8000 to speak with our Arizona debt relief attorney today for immediate help.