Personal bankruptcy is never the preferred position to be in, however lots of individuals find relief in confronting their financial issues and starting over. Nobody is perfect, and people make mistakes. But a lot of men and women hold off filing for bankruptcy for far too long. They prefer to ignore the elephant in the room and spend many years struggling just to make ends meet. Yes, bankruptcy is never pleasurable and lots of people find it embarrassing, however it is the very first step towards financial freedom. Always keep in mind that there is a life after bankruptcy.

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If you’re struggling financially and contemplating bankruptcy, it’s important to identify the warning signs. Here are a number of signs that you’re in serious financial distress.


Making minimum repayments only


One of the clearest signs of financial complications is when you can only afford the minimum repayments on your loans, yet your income isn’t increasing. Interest charges and fees will quickly force you to make a change, either by finding a second job or consolidating your loans. And if you don’t make a change, something must give at some point. Obviously, it’s alright to have a balance on your credit card debt for a few months, but it’s important that you think long-term. If you’re drowning in interest charges and can only afford to make the minimum repayments, it’s time to make a change.


No savings


If you’re living paycheck to paycheck and find that your savings are being used to make repayments on your loans, you’re heading for trouble. The majority of financial advisors strongly recommend having three to six months of living expenses in a dedicated savings account. This account should cover all of your expenses for that period: rent, meals, transport, bills. What happens if you lose your job? Or you can’t work due to illness? And if you’re purchasing luxury items while you have high interest loans outstanding, you should really get your priorities straight. Without having three to six months of living expenses in your savings account, personal insolvency may well become a reality.


Using credit cards to pay your bills.


Credit Cards are a comfortable way to purchase items by giving yourself a short-term loan, particularly in today’s cashless society. Ordinarily, there is an interest-free period of a month or two, but after this time, the interest rates and fees are extraordinarily high. If you are using credit cards to pay for bills due to the fact that you simply don’t have enough cash, you’re on the brink of disaster. Some people will even have several credit cards so they can repay one with another. This is a key sign that you’re heading for personal bankruptcy. Credit cards can be quite dangerous if used incorrectly. Paying bills with debt only results in more debt, with big interest charges added on. If this sounds familiar, seek professional advice as soon as possible.


Debt collectors are calling you


It may seem obvious, but if debt collectors are continuously hassling you on the phone or in the mail, you should consider bankruptcy help. Consider it this way; creditors who feel that they cannot recoup their loan from you will sell your debt at a reduced rate to debt collectors. If creditors have lost faith in your capability to pay your bills, there is obviously a problem. If you’re scared to answer the phone or open your mail as a result of debt collectors, it’s time to act. You can only overlook those threatening phone calls and letters for so long before your quality of life begins to corrode. Pick up the phone and call the professionals, that’s what they’re there for.


Losing sleep


Are you so distressed about your financial future that you can’t sleep at night? This is perhaps the greatest warning sign that you’re heading for bankruptcy. When your health and happiness are declining because of your financial predicament, it’s time to acknowledge that you need help simply to improve your quality of life. Bankruptcy is not the end of the world, and is, in fact, the first step towards financial freedom. Talk to a bankruptcy expert to discover what options you have.


If you’re experiencing any of these warning signs, chances are that you’re currently in financial calamity and are heading towards bankruptcy if changes aren’t made. Personal insolvency is the final step in a long process, and normally there are options before you need file for bankruptcy. To find out what options you have, or to talk to someone about your financial condition, contact Bankruptcy Experts Rockhampton on 1300 795 575 or visit