|
Author: Rachel Smid Article source: http://debt-info.blogspot.com/. Used with author's permission.
Studies have shown that most filed bankruptcies are caused by a few specific reasons. Unexpected medical bills, divorce, and unemployment are the three biggest causes behind bankruptcy. However, these things alone do not usually lead to bankruptcy. Usually, people who are financially in jeopardy find themselves unable to avoid bankruptcy when these things occur. The signs of bankruptcy, though, are usually present long before bankruptcy actually happens. You may be vulnerable:
•If you are living paycheck to paycheck. If you are unable to put any money aside after you have paid your bills, then you are very vulnerable. If your paycheck were interrupted for any reason, such as unemployment or illness, you would not be able to afford living without borrowing. If you are living paycheck to paycheck, you would not be able to afford any debt payments or any unexpected expenses. Debt consolidation can help by helping you figure out where your money is going and by helping you afford your bills.
•If you have no savings. If you have not put any money away then any financial emergency such as unemployment or illness can leave you without money for the basics. With no savings, you would have to borrow in order to pay for the basics in case of an emergency, a risky practice that can quickly lead to unaffordable debt.
•If you have no financial emergency plan. Many people panic if they are unemployed or are faced with divorce or sudden expenses. This can be dangerous, especially if the panic leads to non-action. Just as you have a plan in case of a fire in your home, you should have a plan for dealing with a sudden financial emergency. Your plan may include assets you can liquidate to make money or extra expenses you can cut. By acting on your plan as soon as emergency happens, you can avoid bankruptcy.
•If you have large debts. If you have lots of debts, any emergency may make you unable to meet your debt payments, leading to bankruptcy. Debt consolidation can help you avoid bankruptcy by making your debt payments affordable and by helping you pay down your debts. Rachel Smid is a research analyst for SearchServices.ca and now hopes to share her expertise through publishing information on consumer credit. She wants to help others in their financial planning and debt managment. For more free tips, articles and debt resources, please visit http://www.mycdc.org/.
What is the Significance of Early Morning in the Worship of God?
What is the significance of early morning in the worship of God?
Find The Best Credit Card Type
Since there are so many options in choosing a credit card, you should do a little research before you apply. Decide what type of card best fits your needs and a...
Evaluating Your Customer
It is one thing to make a sales presentation, but it is another thing to make a sales presentation without first evaluating your customer. For all you know, you...
What the Diet Industry Wont Tell You--6 Secrets Revealed
The Diet Industry profits by keeping you fat and desperate. They know that fat, desperate people will buy almost anything, at any price, that promises quick an...
Mississippi River Mouth Debris Jetting Using Acoustic Transducers
The Mighty Mississippi is backing up and causing flooding issues due to over growth build up at its river mouth. This is dangerous because that region is alread...
An Introduction to Shutters
A stately Victorian home is a beautiful sight. With its tall A-frame and pretty colors, it seems to say, "Welcome home!" Its porch calls you home after a long d...
What is SSL (the little padlock)?
The fundamental things you should know about SSL, including what it is, why you need it, and why a cheap SSL certificate is as good as an expensive one.
Building Teams -You see it everywhere
Whatever team you are currently involved with, it is surprising at how much organization is needed to build a great team. In the end, the goal is to work toget...
How to Stay Positive in a Negative World
Have you noticed how you feel when you're around positive people? You feel uplifted, refreshed and energised. You learn that life is what you make it and that y...
The Rarely Told Truth About Network Marketing
Most people don't realize that network marketing is a business of marketing and promotion pursued by people who have NO IDEA how to market and promote. This art...
Visitors Leave After Seeing My Home Page – Aye, Carumba!
One of the keys to a profitable web site is analyzing your hits to visitor ratio. What does it mean if you have a low hit to visitor ratio? This article provide...
How To Get Your Horse To Obey You and Look To You For Instruction
In the animal kingdom there is a pecking order. Richard Shrake points out that it's a lot like the military. He ranks in the pecking order go from General dow...
Design Psychology: Beds and Emotional Well-Being
Design Psychology offers new bedroom makeover ideas concerning your bed for supporting your emotional well-being. Giving thought to your emotional needs when de...
Plane Trip with Kids
Though you can cover even very long distances by car if you have the guts to, as soon as it comes to crossing water, you'll have to stick to a plane. The equati...
For Mother and Baby – What Do You Give? A Gift Basket of Course!
The choice for a baby or an infant gift can be a difficult one. One of the best baby or infant gifts that you can give is a gift basket. A gift basket is that ...
Woodworking Tools: Right Selection And Care Will Save You Money, Part 3
Most basic measuring tools are not complicated instruments that require special care. Yet making proper cuts is a key component of basic woodworking skills. I...
Summer Salads
For a summer snack that will cleanse the kidneys and help the body to unload toxic wastes from the blood, use the following high powered recipes.
Networking and Trade Shows
The most important reasons people exhibit at a trade
show? To see what's new and to gather leads - information
for future business. So, how do you that beside...
Public Service Announcement (PSA) Radio Copy Writing Success
What if the Super Bowl television commercials were all public service announcement (PSA) advertisements rather than beer, cars and soda commercials? Imagine, Th...
Your Guide to Joining the Right Gym
Whether you want to look good on the beach this summer or loose the pounds the thanksgiving turkey puts on, a gym membership could be just the ticket.
Panasonic Pv-gs400 3 Ccd Camcorder – And Ways To Use It To Earn Extra Income
You may find a good camcorder for a great price, but what good is it if you dont have any idea of what to film? Especially if you want to use it to make money.
Art Collectibles as a Hobby
Beautify your home with art collectibles.
By Now, Im an Expert at Memory Loss
I sat down to write my weekly humor column, but I just could not remember what I wanted to write about. This seems to be an increasingly more common affliction...
A Simple Contest with a Strong Message: Wake Up Your Writing Spirit
As a publisher, I've been involved in a lot of writing contests in my time. But none have ever had such a strong message. Maybe it's because it was devised by w...
|
Print this page