Going through financial hardship is a very stressful situation and sadly, millions of people around the world find themselves in this situation each day. Individuals in this predicament have quite a few options to recover from their financial woes, and bankruptcy should be regarded as a last resort when all other alternatives have been exhausted. You’ve quite possibly seen a couple of those debt consolidating businesses offer their services on TV for example. In the majority of cases, it can be complicated to try to figure out ways to recover from financial hardships, and many will declare bankruptcy simply because it appears to be the easiest way of doing so. But how do you know if bankruptcy is the right choice for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your specific situation.
Bankruptcy has some rather severe financial consequences: a bad credit history, increased difficulty in securing loans, and higher interest rates are just a couple of these. So it goes without saying, bankruptcy should not be taken lightly. There are many debt consolidating businesses that are happy to assist you, which is similar to bankruptcy as all your debts are merged into one. This is generally considered a sensible alternative to bankruptcy as the financial penalties aren’t as extreme. But the best way to find out if bankruptcy is the best solution for you is to ask for reliable advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a dangerous condition and bankruptcy may be the best solution for you.
If you don’t have any savings in your bank account and you’re confronting a mountain of debt, then bankruptcy may well be the best alternative for you. Even if you have the ability to work a second job to increase your cash flow, will this allow you to recover from your debts in the next 5 years? If no, then you should think about seeking professional advice about your position, as bankruptcy can be a desirable alternative. Declaring bankruptcy will relieve you of these debts and whilst there are financial penalties, it’s probably the best way to recover in this situation.
Making Minimum Repayments Only
If you can only afford to make the minimum repayments on your debts, then the interest on these debts will compound rapidly and you should really consider bankruptcy before your financial position gets worse. Without any extra income, it can often times take up to 30 years to repay your debts by making minimum repayments only, so all the interest you’ll be paying over this time can truly amount to huge sums of money. Even though you’ll still be paying off debts with interest after filing for bankruptcy, generally you can arrange better terms on conditions on your debts after declaring bankruptcy.
Debt Collectors Are Calling You
When you’re being continually hassled by debt collectors on the telephone and in the mail, it’s an indicator that your financial position is worsening and you ought to make some changes. When you’re being contacted by debt collectors, it means that your creditors have sold your debts at heavily discounted prices to debt collectors because they strongly believe that you aren’t in a position to pay off these debts in a reasonable period of time. This is a clear indicator that you should honestly consider declaring bankruptcy as it’s most probably the best solution for both your finances and your psychological well-being.
Whilst there are some serious financial implications, bankruptcy isn’t the end of the world and in many cases, it’s the first step to financial freedom. When you’re grappling with a mountain of debt and you can’t see any way of recovering in the near future, it’s time to seek professional advice to determine what options you have. While there are many options available to help you in financial hardship, if you’re experiencing any of these warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a bright future. In any case, if you’re facing financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion about your financial situation, contact Bankruptcy Experts Alice Springs on 1300 795 575 or visit www.bankruptcyexpertsalicesprings.com.au