5 Biggest Signs You’re About To Go Bankrupt

Truth is, when it comes to money not many people can manage to use it wisely, could be the reoccurring high demand of costly expenses or paying off debts is just not that easy. Whichever way you look at it, certain things we give little attention to could lead to one being bankrupt.

One becomes bankrupt when they are drowning in debt and have lost possible ways to repay all that they owe.

You can avoid sinking in debts but life is unpredictable there’s no telling when,what or how will you spend. If you could be aware of some of the reasons that lead to bankruptcy, you might try to fix the problems long before it escalates. Being in debts leads to one being black listed and that creates a horrible financial history for you.

Here are 5 Biggest Signs You’re About To Become Bankrupt :

1. Student loan – Most people use loans as an option to finance their studies, by the time their 4 years is over they have a really huge amount of money that they must pay off. The devastating part is that graduating doesn’t guarantee you a well paying job at an instant, it takes time. While you busy job hunting and getting jobs that pay less, the interest rate in your study loan debt increases. As unexpected as it may be that leads to a bankruptcy risk.

2. Job Loss – No matter how you lost your job, reality is that if you no longer getting a regular income that cover all your expenses you undergo financial pressure & strains that leads to bankruptcy.

3. Poor or Excess of Credit – With so many beautiful things advertised to us, it becomes difficult to control the urge of spending and spending until one is knee deep in debts with little or no realisation. Credit card bills, installment debts and other loan payment can get out of control until you unable to pay it all off.

4. Unexpected expenses – Loss of property or any other valuable and useful assets may compel one to make loans to reclaim what they lost by purchasing new ones. Since no one budgets for such, it can affect their financial state negatively driving them straight to debt land.

5. More money going out than coming in – if you spend more than you getting chances are you’ll wind up broke and bankrupt even worse, jobless. The money you earn may not be enough to cover all your expenses which leads to one settling for credit, you just need to master the art of prioritising.