How to Know if You Are Headed for Bankruptcy

With the slowing economy, many people are heading towards bankruptcy to relieve their credit problems. Here is how to tell if you are headed in that direction as well.

Difficulty: Easy

Instructions

Things You'll Need:

• Credit problems
• Owing money

1. Take a look at your bills. People heading for bankruptcy will usually have missed payments, late payments, late fees, higher interest rates and or termination notices.

2. The number of credit cards you own could also be a sign. Opening new credit cards or loans to pay off old credit cards or loans could be another sign.

3. Refinancing your home can also be a problem, if you are doing it simply to be able to make the minimum monthly payments. Doing this will not help and will place you even closer to bankruptcy.

4. Thinking, dreaming, arguing, stressing and getting depressed about your bills, and the lack of money to pay for it all, could be another sign that you are heading for bankruptcy.

Tips & Warnings

• If you see yourself in any of these situations, get credit counseling to avoid having to file for bankruptcy.
• Bankruptcy in some cases, may actually be a good thing.