Although no one likes to admit it, financial problems are very common. Financial problems occur for a variety of different reasons. Whether it is because of overwhelming medical bills or being laid off work, financial troubles can easily occur. The question then becomes, when is filing for bankruptcy the only way out? People often wonder under what circumstances they should actually file bankruptcy. Here are some simple guidelines that can assist you in making that decision.
If you are overwhelmed with debt you can no longer pay, bankruptcy might be a viable option for you. When you wipe your debt completely clean, it is called discharge of debt. The goal of this is to help reduce your overall debt and allow you to start again with a clean slate. Whether you choose to go with Chapter 7 Bankruptcy (straight bankruptcy) or Chapter 13 Bankruptcy (reorganization), most, if not all of your debt will be wiped out.
If your home is currently in foreclosure, bankruptcy can help to stop the foreclosure process any time before the actual sale of the house. However, filing bankruptcy will by no means wipe out your current mortgage. Bankruptcy will help you create a repayment plan for the payments you are behind on.
Bankruptcy can help you keep your car and other processions from being repossessed. Even if your car has been repossessed by the bank, when you file bankruptcy you can actually force them to give you your car back. However, this is only the case if bankruptcy is filed promptly and quickly enough. Any payments you are behind on will then be consolidated into a bankruptcy plan. After you have filed bankruptcy and a plan has been made, your payments will go directly to a bankruptcy trustee, instead of going directly to a finance company.
Bankruptcy can help to eliminate extremely high medical bills. Unfortunately, there are times when medical bills, whether due to an accident or major illness, can get to the point where you can no longer pay for them. If you choose to file Chapter 13 bankruptcy, then your overall medical bills can dramatically be reduced.
One of the most common reasons people file bankruptcy is because loss of work. Families can easily become comfortable with the income they are making, whether it is a single or dual income family. Then, if the unthinkable occurs and you become unemployed, bills can quickly pile up. Often times, losing your job can be directly related to a medical reason. Therefore, with high medical bills and no income to pay them or other bills, bankruptcy may be the only viable option to get out from under the bills.
Bankruptcy can stop the harassing phone calls and letters from creditors. Often times, creditors do not follow the rules when trying to collect a debt. Creditors will continuously call the home and act very inappropriately with abusive and demeaning behavior.
If you are unable to pay your utility bills and are close to having them shut off or have already had them shut off, then bankruptcy may be your way out. Filing bankruptcy can help keep your electric and other utilities from being shut off.
Student loans are another source of overwhelming debt. Although student loans will not be completely eliminated through bankruptcy, it can help to consolidate your loan leaving you with a more manageable payment.
Wage garnishments can be stopped through Chapter 7 Bankruptcy. Wage garnishments often make it impossible to purchase essential items for your family. Bankruptcy can help keep food on the table by ending the wage garnishments.
Paul Sarwana offers information about how to file for bankruptcy to help debtors build confidence in improving their financial situation. He runs an informational website that provides tips on choosing a debt relief service, dealing with creditors, increasing credit score, choosing a good bankruptcy lawyer and managing money. Please visit debt relief services review to get more quality bankruptcy information.
Article Source: http://EzineArticles.com/?expert=Paul_Sarwana
Thursday, September 20, 2007
Can You Refinance After Bankruptcy?
After filing bankruptcy, people often wonder if they can obtain a new loan or possibly refinance the loan they currently have. Although it may seem especially difficult to refinance after bankruptcy, it doesn’t have to be. Within as little as six months after you have filed bankruptcy, you will have lenders who are more than willing to allow you to refinance your current loan. In fact, if you choose to refinance your loan, you could actually be taking steps towards rebuilding your credit.
When refinancing after bankruptcy, you will obtain a “bad credit loan”. A bad credit loan is a great way to help rectify your bad credit. Interest rates of bad credit loans will vary with each individual situation. Depending on your current credit score and financial situation, your interest rate could be significantly higher or lower.
In the six months following your bankruptcy, be sure to establish a excellent payment history. This is done by simply paying your current mortgage and other bills on time. This is also an excellent time to obtain a credit card so that you can start building a good credit history. If at all possible, try increasing your savings account. Your application will look better if you have some cash assets.
Next, begin your refinancing process by researching lenders. It is important that you know what their interest rates are. There are numerous online websites that allow you to easily compare company’s rates. Be sure to look at both their interest rates, as well as any fees they charge for refinancing. If you have a choice of companies, it is better to choose one with a slightly higher interest rate and lower fees. When looking to refinance after bankruptcy, you will often be required to work with a sub prime lender. With such lenders, you will generally be forced to pay an interest rate that is a few percentage points higher than someone with no bankruptcy.
Whenever possible, try to avoid cashing out the equity you have in your home. Although it is possible to cash out your equity to buy a new car or make home improvements, it is better to leave the equity alone so that you can improve your credit rating.
After you have refinanced, you can then begin to rebuild your credit. In approximately two years, with regular on time payments, you can generally lower your interest rate. You will need to continue to add to your savings, as well as make all payments on time.
Many people believe they cannot refinance after they have filed bankruptcy. This is simply not true. When looking to refinance after bankruptcy, be sure to shop around to ensure you will get the best overall rate. With a bit of research and patience, it is possible to refinance after bankruptcy.
You can learn more about how to refinance after bankruptcy by going to http://www.bankruptcy.get-the-info.net
Article Source: http://EzineArticles.com/?expert=Robin_Boddy
When refinancing after bankruptcy, you will obtain a “bad credit loan”. A bad credit loan is a great way to help rectify your bad credit. Interest rates of bad credit loans will vary with each individual situation. Depending on your current credit score and financial situation, your interest rate could be significantly higher or lower.
In the six months following your bankruptcy, be sure to establish a excellent payment history. This is done by simply paying your current mortgage and other bills on time. This is also an excellent time to obtain a credit card so that you can start building a good credit history. If at all possible, try increasing your savings account. Your application will look better if you have some cash assets.
Next, begin your refinancing process by researching lenders. It is important that you know what their interest rates are. There are numerous online websites that allow you to easily compare company’s rates. Be sure to look at both their interest rates, as well as any fees they charge for refinancing. If you have a choice of companies, it is better to choose one with a slightly higher interest rate and lower fees. When looking to refinance after bankruptcy, you will often be required to work with a sub prime lender. With such lenders, you will generally be forced to pay an interest rate that is a few percentage points higher than someone with no bankruptcy.
Whenever possible, try to avoid cashing out the equity you have in your home. Although it is possible to cash out your equity to buy a new car or make home improvements, it is better to leave the equity alone so that you can improve your credit rating.
After you have refinanced, you can then begin to rebuild your credit. In approximately two years, with regular on time payments, you can generally lower your interest rate. You will need to continue to add to your savings, as well as make all payments on time.
Many people believe they cannot refinance after they have filed bankruptcy. This is simply not true. When looking to refinance after bankruptcy, be sure to shop around to ensure you will get the best overall rate. With a bit of research and patience, it is possible to refinance after bankruptcy.
You can learn more about how to refinance after bankruptcy by going to http://www.bankruptcy.get-the-info.net
Article Source: http://EzineArticles.com/?expert=Robin_Boddy
Before Bankruptcy
Understand it before you need it and you may be able to avoid it. You may also be more confident about getting through it if you need to.
Cost/Benefit analysis is thought of as a Business Procedure, but you are in the business of remaining solvent if possible. Your Family and Yourself could have no more critical business to attend to.
LET'S START AT HOME
What is your Day? What do you spend your time doing? As the grip of debt grows tighter, time is what you have to spend; some days it may be all you have to spend. Roll with it. Panic doesn't solve anything. The basics of course are:
* Water
* Food
* Shelter
We take water for granted, but that's a different subject. Once your children (family) are fed and sheltered, in a sense everything after that is extra.
Believe it or not one of the next priorities is 'entertainment', not TV, Dancing, Big Screen type entertainment. I mean, what do you do with your time?
MONEY vs TIME
Most of our society is trained that entertainment means, 'Where should we spend our Money'. The kind of entertainment I mean is 'How should we spend our TIME?' Those of you with small children realize that sometimes it doesn't matter how much you spend, sometimes it just ain't 'entertaining' to the audience.
Sit down with everyone in your Family that 'spends' money and discuss the daily expenditures. Write them down. I know we've all heard that before, 'Write down where ever penny goes'. It really will open your eyes to corners you can cut. Prioritize these possible reductions.
Analyze your day, making decisions as to 'necessity', 'entertainment value' and 'cost per hour of entertainment'. Things like 'Should we give up the daily and weekend paper? That $12 a month could be spent better.' But when considered as the hours you spend reading the paper, Sunday Comics, Editorials etc, is $12 a month expensive? You've done something you enjoy for Hours a week.
Is it worth Buying DVD's? Again, I don't know about you, but I don't buy a DVD or CD unless it's something I know I'll watch or listen to many times. I consider a Classic Movie, especially with 'Special Features' to be a very enjoyable use of time, every time I watch it.
Is it worth paying for Cable TV or Satellite? A good internet connection is something I consider a basic necessity. I use DSL and get my phone bill from the same company. Depending on the area in which you live, the combination may be Cable + Internet, or Dish + whatever, you will make that determination as part of the Plan you are going to formulate before you finish this document. My Cable system uses a tier system and it is quite a financial jump to go to a higher tier to get 1 or 2 channels. On the other hand they also offer Hi-Speed Internet.
For the sake of educating our children I put quite a bit of 'weight' on access to a good internet connection. We can't go to the Library 5 times a day. Admittedly there are many concerns with the internet as well as TV, but in my estimation more selective value can be garnered from the internet than is available on TV.
As far as the rest of the offerings from TV and the 'Entertainment Media' which lately includes the shows I remember that were known as 'News'. Years ago they were labeled a 'wasteland', now wasted land maybe. If you look at our 'Post Modern' cycle of 'Marketing that which they all need', (Because we told them so), you may notice that ALL TV Programs are selling something, even without the 55 minutes per hour of commercials, the 'show' is selling something. Watch closely, if you dare to watch. The subtle persuasive techniques can have you spending in a flash, almost whether you want to or not.
SOME CHOICES
If your decision may include bankruptcy, more education is in order. Because people are usually not aware of the differences between chapter 13 and chapter 7, they are unsure of which bankruptcy chapter to file.
Webmaster and Editor of informational Blogs and Sites since 2000
C R Ellsworth is retired from Corporate America and living in the 'Great Northwoods'
FICO Score Scene
Incorporate A Business Now
Eliminate Credit Card Debt Now
Article Source: http://EzineArticles.com/?expert=C_R_Ellsworth
Cost/Benefit analysis is thought of as a Business Procedure, but you are in the business of remaining solvent if possible. Your Family and Yourself could have no more critical business to attend to.
LET'S START AT HOME
What is your Day? What do you spend your time doing? As the grip of debt grows tighter, time is what you have to spend; some days it may be all you have to spend. Roll with it. Panic doesn't solve anything. The basics of course are:
* Water
* Food
* Shelter
We take water for granted, but that's a different subject. Once your children (family) are fed and sheltered, in a sense everything after that is extra.
Believe it or not one of the next priorities is 'entertainment', not TV, Dancing, Big Screen type entertainment. I mean, what do you do with your time?
MONEY vs TIME
Most of our society is trained that entertainment means, 'Where should we spend our Money'. The kind of entertainment I mean is 'How should we spend our TIME?' Those of you with small children realize that sometimes it doesn't matter how much you spend, sometimes it just ain't 'entertaining' to the audience.
Sit down with everyone in your Family that 'spends' money and discuss the daily expenditures. Write them down. I know we've all heard that before, 'Write down where ever penny goes'. It really will open your eyes to corners you can cut. Prioritize these possible reductions.
Analyze your day, making decisions as to 'necessity', 'entertainment value' and 'cost per hour of entertainment'. Things like 'Should we give up the daily and weekend paper? That $12 a month could be spent better.' But when considered as the hours you spend reading the paper, Sunday Comics, Editorials etc, is $12 a month expensive? You've done something you enjoy for Hours a week.
Is it worth Buying DVD's? Again, I don't know about you, but I don't buy a DVD or CD unless it's something I know I'll watch or listen to many times. I consider a Classic Movie, especially with 'Special Features' to be a very enjoyable use of time, every time I watch it.
Is it worth paying for Cable TV or Satellite? A good internet connection is something I consider a basic necessity. I use DSL and get my phone bill from the same company. Depending on the area in which you live, the combination may be Cable + Internet, or Dish + whatever, you will make that determination as part of the Plan you are going to formulate before you finish this document. My Cable system uses a tier system and it is quite a financial jump to go to a higher tier to get 1 or 2 channels. On the other hand they also offer Hi-Speed Internet.
For the sake of educating our children I put quite a bit of 'weight' on access to a good internet connection. We can't go to the Library 5 times a day. Admittedly there are many concerns with the internet as well as TV, but in my estimation more selective value can be garnered from the internet than is available on TV.
As far as the rest of the offerings from TV and the 'Entertainment Media' which lately includes the shows I remember that were known as 'News'. Years ago they were labeled a 'wasteland', now wasted land maybe. If you look at our 'Post Modern' cycle of 'Marketing that which they all need', (Because we told them so), you may notice that ALL TV Programs are selling something, even without the 55 minutes per hour of commercials, the 'show' is selling something. Watch closely, if you dare to watch. The subtle persuasive techniques can have you spending in a flash, almost whether you want to or not.
SOME CHOICES
If your decision may include bankruptcy, more education is in order. Because people are usually not aware of the differences between chapter 13 and chapter 7, they are unsure of which bankruptcy chapter to file.
Webmaster and Editor of informational Blogs and Sites since 2000
C R Ellsworth is retired from Corporate America and living in the 'Great Northwoods'
FICO Score Scene
Incorporate A Business Now
Eliminate Credit Card Debt Now
Article Source: http://EzineArticles.com/?expert=C_R_Ellsworth
How To Avoid Personal Bankruptcy
Bankruptcy can sometimes be a horrible thing, especially when your credit is in question. Bankruptcy happens when you are over your knees in depth and you see no light in the tunnel, and feel that there is no one to turn to for help, so there you go filing bankruptcy. Stop.
Bankruptcy can ruin the way people will look at you, especially if you go to buy a new house. (Bankruptcy can affect your credit big time) So be careful with what you do. You can avoid personal bankruptcy by watching how you spend your money. Don't over indulge your self and buy stuff you don't need. If that stuff that you are wanting is not essential, then there is not need to buy it until you can afford it. You will be able to find it again when you can afford it, it's not like it is going to disappear off the face of the earth.
Avoiding bankruptcy can be tough, but there are always other options out there. You could always find a higher paying job, or get a weekend job on the side to help you pay your bills instead of filing bankruptcy. Always make sure you budget yourself correctly, you know that the important bills come first. If you are paying on stuff like credit cards, sorry to say it, but chances are dropping these credit card payments is better than filing bankruptcy, the credit card paying will only be on your credit history for seven years, bankruptcy can be forever.
If you are afraid of having to file bankruptcy chances are there is always a choice out there before you make the choice of filing bankruptcy, you just have to search for other options. Even if it means that you have to let a few luxuries in your life go it is better than filing bankruptcy.
Written by Jo Scher Leo. Find the latest information on personal bankruptcy as well as Personal Debt Advice
Article Source: http://EzineArticles.com/?expert=Jo_Scher_Leo
Bankruptcy can ruin the way people will look at you, especially if you go to buy a new house. (Bankruptcy can affect your credit big time) So be careful with what you do. You can avoid personal bankruptcy by watching how you spend your money. Don't over indulge your self and buy stuff you don't need. If that stuff that you are wanting is not essential, then there is not need to buy it until you can afford it. You will be able to find it again when you can afford it, it's not like it is going to disappear off the face of the earth.
Avoiding bankruptcy can be tough, but there are always other options out there. You could always find a higher paying job, or get a weekend job on the side to help you pay your bills instead of filing bankruptcy. Always make sure you budget yourself correctly, you know that the important bills come first. If you are paying on stuff like credit cards, sorry to say it, but chances are dropping these credit card payments is better than filing bankruptcy, the credit card paying will only be on your credit history for seven years, bankruptcy can be forever.
If you are afraid of having to file bankruptcy chances are there is always a choice out there before you make the choice of filing bankruptcy, you just have to search for other options. Even if it means that you have to let a few luxuries in your life go it is better than filing bankruptcy.
Written by Jo Scher Leo. Find the latest information on personal bankruptcy as well as Personal Debt Advice
Article Source: http://EzineArticles.com/?expert=Jo_Scher_Leo
It's Important To Understand The Lasting Effects Of A Personal Bankruptcy Filing
Unfortunately, for more and more people these days personal bankruptcy filings seem to be inevitable. Life happens, and along with it comes a lot of twists and turns that can put people between a rock and a hard financial spot. Various types of accidents, health and medical issues, legal problems and in some cases, just plain poor money management, to name a few, can all lead to a person feeling that their only solution is to file one of the varieties of personal bankruptcies. And to be fair, this is to a great extent why the bankruptcy code exists in the first place. People shouldn't abuse the personal bankruptcy code, but it does serve a vital role in cases where other options don't exist or just aren't practical.
As a home mortgage originator and mortgage broker for the past 17 years, I have seen all too well though, the ramifications a personal bankruptcy can have on individuals and their families. It may seem like the best idea at the time of filing, but a few months or even a few years later, things can look a whole lot different. Again, I want to emphasize that I am not against personal bankruptcy filings, especially where all other viable options have been exhausted and bankruptcy remains the only real solution. However, my beef is with bankruptcy professionals who may downplay the lasting effects that filing a bankruptcy will have on their clients. In my opinion, this is just as bad as those mortgage professionals who place their clients in highly aggressive or risky mortgages without properly disclosing the various downside implications of those products in various financial markets.
Just like in the mortgage business, it's all about proper disclosure. Each set of circumstances that our clients face is different than the next. Some cases call for a very conservative approach, while another may lend itself to a more aggressive solution. An individual's income, assets, and likelihood of continued earnings all play an important role in determining what's appropriate for each person. A younger person, for example, may have the benefit of lots of years to recoup from a personal bankruptcy, while a senior citizen may not enjoy the luxury of future increases in income, asset growth, etc. I think the key is that any personal bankruptcy attorney provide a balanced approach in discussing the pros and cons of a personal bankruptcy filing.
Now I know that there are many excellent bankruptcy attorneys out there who do just that. In fact, a personal bankruptcy attorney friend of mine, Mark Carter, has referred many potential bankruptcy clients to me in the hopes that an alternate solution to filing bankruptcy could be achieved. Granted, sometimes this is out of necessity, as some individuals may not qualify to file bankruptcy, but in many cases it's the result of careful review of their situation and the realization that another remedy may be more beneficial to their client. This is definitely the type of bankruptcy attorney you want in your court when you're faced with any kind of financial dilemma. By the way, if you happen to be considering a personal bankruptcy filing and you are looking for a Vancouver Washington bankruptcy attorney, be sure to check out Mark's website by doing a search on Mark Carter Law. He's a great guy and you'd be hard pressed to find a more capable bankruptcy lawyer.
A personal bankruptcy is something that no one sets out to go through, but it happens. If you find yourself faced with difficult financial circumstances, be sure you get good advice. Ask your bankruptcy attorney about how the bankruptcy filing will affect your ability to borrow money to purchase or refinance a mortgage, obtain a student loan for a child, or tap into your home's home equity for home improvements or a college education, to name a few. How long will it take for you to rebound from the bankruptcy, and what steps should you take to expedite the process. Explore other solutions with your attorney that might help you to avoid a personal bankruptcy filing altogether. Once you've really explored all of your options, you'll be in position to make the best decision about your own financial future.
The author of this article, Bob DeWeese, is a long time freelance writer and website author. His site, PersonalBankruptcyKit.com is dedicated to providing well written current day articles relating to bankruptcy and bankruptcy related matters. Visit http://www.personalbankruptcykit.com or read Personal Bankruptcy for additional articles and resources pertaining to personal bankruptcy issues.
Article Source: http://EzineArticles.com/?expert=Bob_Deweese
As a home mortgage originator and mortgage broker for the past 17 years, I have seen all too well though, the ramifications a personal bankruptcy can have on individuals and their families. It may seem like the best idea at the time of filing, but a few months or even a few years later, things can look a whole lot different. Again, I want to emphasize that I am not against personal bankruptcy filings, especially where all other viable options have been exhausted and bankruptcy remains the only real solution. However, my beef is with bankruptcy professionals who may downplay the lasting effects that filing a bankruptcy will have on their clients. In my opinion, this is just as bad as those mortgage professionals who place their clients in highly aggressive or risky mortgages without properly disclosing the various downside implications of those products in various financial markets.
Just like in the mortgage business, it's all about proper disclosure. Each set of circumstances that our clients face is different than the next. Some cases call for a very conservative approach, while another may lend itself to a more aggressive solution. An individual's income, assets, and likelihood of continued earnings all play an important role in determining what's appropriate for each person. A younger person, for example, may have the benefit of lots of years to recoup from a personal bankruptcy, while a senior citizen may not enjoy the luxury of future increases in income, asset growth, etc. I think the key is that any personal bankruptcy attorney provide a balanced approach in discussing the pros and cons of a personal bankruptcy filing.
Now I know that there are many excellent bankruptcy attorneys out there who do just that. In fact, a personal bankruptcy attorney friend of mine, Mark Carter, has referred many potential bankruptcy clients to me in the hopes that an alternate solution to filing bankruptcy could be achieved. Granted, sometimes this is out of necessity, as some individuals may not qualify to file bankruptcy, but in many cases it's the result of careful review of their situation and the realization that another remedy may be more beneficial to their client. This is definitely the type of bankruptcy attorney you want in your court when you're faced with any kind of financial dilemma. By the way, if you happen to be considering a personal bankruptcy filing and you are looking for a Vancouver Washington bankruptcy attorney, be sure to check out Mark's website by doing a search on Mark Carter Law. He's a great guy and you'd be hard pressed to find a more capable bankruptcy lawyer.
A personal bankruptcy is something that no one sets out to go through, but it happens. If you find yourself faced with difficult financial circumstances, be sure you get good advice. Ask your bankruptcy attorney about how the bankruptcy filing will affect your ability to borrow money to purchase or refinance a mortgage, obtain a student loan for a child, or tap into your home's home equity for home improvements or a college education, to name a few. How long will it take for you to rebound from the bankruptcy, and what steps should you take to expedite the process. Explore other solutions with your attorney that might help you to avoid a personal bankruptcy filing altogether. Once you've really explored all of your options, you'll be in position to make the best decision about your own financial future.
The author of this article, Bob DeWeese, is a long time freelance writer and website author. His site, PersonalBankruptcyKit.com is dedicated to providing well written current day articles relating to bankruptcy and bankruptcy related matters. Visit http://www.personalbankruptcykit.com or read Personal Bankruptcy for additional articles and resources pertaining to personal bankruptcy issues.
Article Source: http://EzineArticles.com/?expert=Bob_Deweese
How to Spot Warning Signs of Bankruptcy
Bankruptcy is essentially an inability to meets one's financial commitments as they become due. Public stereotypes of bankruptcy are often negative and associated with failure, poor financial management and can often lead to the individual being stigmatised by family and friends.
It must be stressed however that many people face bankruptcy for a host of other reasons or unfortunate events which are not always entirely their own fault. Drawing upon my experience or dealing with individuals with serious financial difficulties, this article aims attempts to examine the warning signs associated with bankruptcy in the hope that it can be avoided.
Warning signs to heed;
1. Ignoring the problem
This by far one of the largest contributory factors because few individuals like to believe that they are in financial difficulties for a host of different reasons. For some they fear telling a husband, wife or partner that money is problematic for fear of losing credibility with the person they love or ultimately the relationship. Other individuals are unable to accept that they have an obsessive disorder that leads to over extravagant spending. Still others have just never learnt to budget wisely in the first place.
2. Sleep Disorder/Anxiety
Stress can often cause anxiety or sleep disorders even amongst the most calm and collected individual. We all suffer from difficulties sleeping or anxiety at some time in our life but if you discover that you regularly fret about your financial circumstances and have difficulties getting off to sleep or wake up in the night worrying about money then this is a sure sign that you need to seek some professional help to address your financial budgeting.
3. Always in Overdraft or maxed out on your credit cards
It is now socially acceptable now to have significant credit card debts and whilst the use of credit is generally not a problem you should be concerned if you continually find yourself trapped in a cycle of debt where next month's wage packet only just meets last month's debt.
4. Hiding Bank Statements
Loved one's are often best placed to identify warning signs of bankruptcy in their wife, husband or partner. If you observe the person you share your financial resources with getting to the post each morning it could be a sign of financial difficulties and they may be hiding financial information from you. Of course this conclusion could perhaps only be reached if some of the other warning signs discussed earlier are also apparent.
5. Regularly asking for a salary advance
Whilst it's perfectly acceptable to occasionally get a cash advance from your employer to help you out of a tight spot should be concerned if you continually seek out your boss before your next pay day in order to obtain a salary advance. At this you should start to realise that you may be heading towards bankruptcy.
6. Language used to describe your financial circumstances
What has language got to do with anything I hear you ask? Well quite a lot. At a cognitive level as human beings we often try to rationalise and justify our behaviour internally to ourselves and this can be used both positively and negatively in our lives. An example of a positive use of cognition in our financial undertakings would be "I really like those shoes, but I just can't afford them this month." You should however be concerned if you start using some of the following language to describe your financial habits, "I'm just in a tight spot right now", "I'm a bit strapped for cash right now but I'll pay you back", "can you lend me some money until next week". These can all be warning signs that you should listen to that you may be on the slippery slope to bankruptcy.
If you need some further support to avoid bankruptcy call this independent government backed site.
The UK Insolvency Debtbuster helpline 0800 074 6918
Summary
Bankruptcy affects many people for different reasons but there are some general warning signs that should be noted as a means of preventing further decline. Whilst this can never be a definite examination of a subject that is complex and deeply personal by far the biggest warning sign of a looming bankruptcy is Ignoring the problem. By overcoming this barrier an individual is able to address financial difficulties before they get worse. Remember that thought processes and spending habits can also indicate underlying difficulties in personal finances. The most qualified person to spot the warning signs of bankruptcy is YOU so don't ignore the problem get some professional advice before it's too late.
More Financial Planning Information available at http://www.friendsandmoney.co.uk/financialplanningarticles.html
Article Source: http://EzineArticles.com/?expert=J_Dawkins
It must be stressed however that many people face bankruptcy for a host of other reasons or unfortunate events which are not always entirely their own fault. Drawing upon my experience or dealing with individuals with serious financial difficulties, this article aims attempts to examine the warning signs associated with bankruptcy in the hope that it can be avoided.
Warning signs to heed;
1. Ignoring the problem
This by far one of the largest contributory factors because few individuals like to believe that they are in financial difficulties for a host of different reasons. For some they fear telling a husband, wife or partner that money is problematic for fear of losing credibility with the person they love or ultimately the relationship. Other individuals are unable to accept that they have an obsessive disorder that leads to over extravagant spending. Still others have just never learnt to budget wisely in the first place.
2. Sleep Disorder/Anxiety
Stress can often cause anxiety or sleep disorders even amongst the most calm and collected individual. We all suffer from difficulties sleeping or anxiety at some time in our life but if you discover that you regularly fret about your financial circumstances and have difficulties getting off to sleep or wake up in the night worrying about money then this is a sure sign that you need to seek some professional help to address your financial budgeting.
3. Always in Overdraft or maxed out on your credit cards
It is now socially acceptable now to have significant credit card debts and whilst the use of credit is generally not a problem you should be concerned if you continually find yourself trapped in a cycle of debt where next month's wage packet only just meets last month's debt.
4. Hiding Bank Statements
Loved one's are often best placed to identify warning signs of bankruptcy in their wife, husband or partner. If you observe the person you share your financial resources with getting to the post each morning it could be a sign of financial difficulties and they may be hiding financial information from you. Of course this conclusion could perhaps only be reached if some of the other warning signs discussed earlier are also apparent.
5. Regularly asking for a salary advance
Whilst it's perfectly acceptable to occasionally get a cash advance from your employer to help you out of a tight spot should be concerned if you continually seek out your boss before your next pay day in order to obtain a salary advance. At this you should start to realise that you may be heading towards bankruptcy.
6. Language used to describe your financial circumstances
What has language got to do with anything I hear you ask? Well quite a lot. At a cognitive level as human beings we often try to rationalise and justify our behaviour internally to ourselves and this can be used both positively and negatively in our lives. An example of a positive use of cognition in our financial undertakings would be "I really like those shoes, but I just can't afford them this month." You should however be concerned if you start using some of the following language to describe your financial habits, "I'm just in a tight spot right now", "I'm a bit strapped for cash right now but I'll pay you back", "can you lend me some money until next week". These can all be warning signs that you should listen to that you may be on the slippery slope to bankruptcy.
If you need some further support to avoid bankruptcy call this independent government backed site.
The UK Insolvency Debtbuster helpline 0800 074 6918
Summary
Bankruptcy affects many people for different reasons but there are some general warning signs that should be noted as a means of preventing further decline. Whilst this can never be a definite examination of a subject that is complex and deeply personal by far the biggest warning sign of a looming bankruptcy is Ignoring the problem. By overcoming this barrier an individual is able to address financial difficulties before they get worse. Remember that thought processes and spending habits can also indicate underlying difficulties in personal finances. The most qualified person to spot the warning signs of bankruptcy is YOU so don't ignore the problem get some professional advice before it's too late.
More Financial Planning Information available at http://www.friendsandmoney.co.uk/financialplanningarticles.html
Article Source: http://EzineArticles.com/?expert=J_Dawkins
Bad Credit Debt Consolidation: The Bankruptcy Alternative
The way to establish a good credit rating is to use your credit in such a manner that your total debt never approaches your total credit limit, and that you always make your payments by their due dates. Getting a bad credit rating means that you have a record of incurring over limit charges and late payment fees.
But no matter how stellar your credit history, as long as you owe money, you are at risk of having that credit history damaged either by bad financial management, or by circumstances completely beyond your control. A sudden illness and the accompanying medical bills, the loss of a job, or a denied insurance claim can leave you struggling with a financial nightmare, and dependent on credit cards or other loans to keep you afloat until things turn around.
Do You Need A Bad Credit Debt Consolidation?
The difficulty arises when it is time to pay back those loans, which may not have been enough to eliminate your other expenses, and in the meantime are accruing interest. If you feel helpless because you owe so much money to so many different creditors, it may be time for you to explore bad credit debt consolidation.
Your first thought may be, "But why not just file bankruptcy?" You may eventually decide to do that, but think long and hard before you do. Having a bankruptcy on your credit history can severely limit your financial options for up to ten years; getting a bad credit consolidation loan, on the other hand, will let you restore your credit by paying off your existing bills, and maintain a good credit rating as long as you make your payments on the bad credit consolidation loan.
The first thing you are likely to experience after taking out a bad credit consolidation loan is relief. You will have paid off all your other debts, and be on the road to retaking control of your finances. But bad debt consolidation loans need to be looked at in the light of both their advantages and disadvantages.
The biggest advantage, as far as you're concerned, about a bad credit debt consolidation loan is that it will carry a lower interest rate than the other loans which you had been trying to pay off. When you research bad credit consolidation loans, find those with the lowest possible interest rates.
The Home Equity Loan
The most frequently requested bad credit consolidation loan is the home equity loan. A home equity loan allows you to take a second mortgage on you home; the amount of money you can borrow will depend on how much of your existing mortgage you have already paid off. Because you are putting your home up as collateral, these bad credit consolidating loans are considered secure and lender can foreclose on your home if you go into default. Home equity loans, therefore, demand a great deal of consideration.
You can learn more about bad credit consolidation home equity loans by doing some Internet research; information on the lenders and loan process is easily and quickly available. For more info see http://personalbadcreditloanshelp.com/Articles/Bad_Credit_Car_Loan.php on Bad Credit Car Loan.
Precaution
The disadvantage of searching for a bad credit consolidation loan is that there are many unscrupulous lenders offering unsecured loans, promising to let you pay off all you other debt without requiring collateral or high monthly payments. Just remember that if it sounds to good to be true, it probably is, and approach such offers with extreme caution.
About the Author
You can also find more info on Bad Credit Loan and Bad Credit Business Loan.
But no matter how stellar your credit history, as long as you owe money, you are at risk of having that credit history damaged either by bad financial management, or by circumstances completely beyond your control. A sudden illness and the accompanying medical bills, the loss of a job, or a denied insurance claim can leave you struggling with a financial nightmare, and dependent on credit cards or other loans to keep you afloat until things turn around.
Do You Need A Bad Credit Debt Consolidation?
The difficulty arises when it is time to pay back those loans, which may not have been enough to eliminate your other expenses, and in the meantime are accruing interest. If you feel helpless because you owe so much money to so many different creditors, it may be time for you to explore bad credit debt consolidation.
Your first thought may be, "But why not just file bankruptcy?" You may eventually decide to do that, but think long and hard before you do. Having a bankruptcy on your credit history can severely limit your financial options for up to ten years; getting a bad credit consolidation loan, on the other hand, will let you restore your credit by paying off your existing bills, and maintain a good credit rating as long as you make your payments on the bad credit consolidation loan.
The first thing you are likely to experience after taking out a bad credit consolidation loan is relief. You will have paid off all your other debts, and be on the road to retaking control of your finances. But bad debt consolidation loans need to be looked at in the light of both their advantages and disadvantages.
The biggest advantage, as far as you're concerned, about a bad credit debt consolidation loan is that it will carry a lower interest rate than the other loans which you had been trying to pay off. When you research bad credit consolidation loans, find those with the lowest possible interest rates.
The Home Equity Loan
The most frequently requested bad credit consolidation loan is the home equity loan. A home equity loan allows you to take a second mortgage on you home; the amount of money you can borrow will depend on how much of your existing mortgage you have already paid off. Because you are putting your home up as collateral, these bad credit consolidating loans are considered secure and lender can foreclose on your home if you go into default. Home equity loans, therefore, demand a great deal of consideration.
You can learn more about bad credit consolidation home equity loans by doing some Internet research; information on the lenders and loan process is easily and quickly available. For more info see http://personalbadcreditloanshelp.com/Articles/Bad_Credit_Car_Loan.php on Bad Credit Car Loan.
Precaution
The disadvantage of searching for a bad credit consolidation loan is that there are many unscrupulous lenders offering unsecured loans, promising to let you pay off all you other debt without requiring collateral or high monthly payments. Just remember that if it sounds to good to be true, it probably is, and approach such offers with extreme caution.
About the Author
You can also find more info on Bad Credit Loan and Bad Credit Business Loan.
Subscribe to:
Posts (Atom)