Being financially stable is essential to having a secure life. Unfortunately, many Americans find themselves in debt and unable to pay their bills due to unforeseen circumstances. Filing for bankruptcy can offer relief for some, but it's a last resort. It's important to recognize the warning signs that you may need to file for bankruptcy so that you can take action.

1. You're Taking in Less Than You Need

If you're spending more money each month than you're taking in, then you're operating in the negative. Whether the cause of this issue is high medical bills, unemployment, or simply poor budgeting, it's not a good spot to find yourself consistently in. Bankruptcy may be a viable option to stop collectors from coming after your paycheck.

2. You're Paying Only Minimum Payments on Credit Cards

If you're only able to make minimum payments on your credit cards and other debts, then it's time to take a serious look at your financial situation. Not only will you be unable to pay off your debts any time soon, but the interest on those balances will add up quickly. Bankruptcy can provide relief from interest charges and help you get back in control of your finances.

3. You're Maxing Out Credit Cards

Maxing out your credit cards is a clear sign that you've overextended yourself financially. It's easy to fall into the trap of charging more and more until reaching a limit, but it won't help in the long run. Using credit cards this way also impacts your credit score. Filing for bankruptcy can help you make a fresh start and get the breathing room needed to regain control over your finances.

4. You're Borrowing Money From Friends or Family

Turning to family or friends for financial assistance is a sign that you need help with your debt. You may be able to find some short-term relief from the situation, but it won't solve the underlying problem. Bankruptcy can help you wipe out certain types of debt and get back on track with your finances.

Your finances are an important part of your life. If you recognize any of these warning signs, then it may be time to consider filing for bankruptcy. According to Statista, in 2022, there were 370,685 cases of personal bankruptcy filed nationwide in the United States. Bankruptcy can help you start fresh and get out of debt with a minimum amount of financial damage. Contact our local staff at Christman & Fascetta LLC today for more information.