You work hard for the things you have. Day in and day out, you go to work to earn a living. Unfortunately, you cannot always control whether you are going to have your job from one week to the next. In the event you lose your job or have your hours cut, your finances start to suffer. You start falling further in debt than what you ever imagined. Don't think you have a problem? Consider some of these signs that you have a serious debt problem and need to determine which way is the best to proceed.
You continually get one payday loan after another.
What might have started as a single payday loan to pay some bills can end up spiraling out-of-control and leaving you with more than you can handle. Before you know it, you are getting more payday loans just to pay off the ones you have. Instead of getting out of debt, the cycle continually worsens. Paying one loan with another one is one of the worst things you can do. If you aren't able to pay your loans on your own, you might want to think twice about getting them in the first place.
You use credit cards to pay your other credit card bills.
Are you using one credit card to make the minimum payment on another credit card? If so, that means you have a serious problem that needs to be addressed right away. Not only are you adding more and more in interest to your balances, but you are going farther in the hole with each passing month. You shouldn't have to pay interest on your own monthly payments. They should be interest-free. Not being able to afford the minimum monthly payment on your credit cards can be dangerous.
You keep applying for new credit cards to get by.
If you are so far in debt that you have to keep getting new credit cards just to pay your bills, you are in trouble. Adding more credit cards to the mix isn't going to help improve your situation. You are only adding to the growing pile of debt you already have.
Sure, no one plans on losing their job, but it can happen at any point in time. One of the best things you can do is to take your information to a bankruptcy attorney and let them look everything over to determine what the best option for your situation is. They can help you decide whether you can find some way to recover or wither you should file for chapter 13 or chapter 7 bankruptcy.