Going through financial hardship is a considerably stressful situation and sadly, millions of individuals across the globe end up in this position every year. People in this scenario have numerous options to recover from their financial troubles, and bankruptcy should be considered as a last resort when all other options have been exhausted. You’ve most probably seen a couple of those debt consolidating businesses promote their services on TV for example. In many cases, it can be difficult to try to work out how to recover from financial complications, and many will resort to bankruptcy simply because it seems to be the simplest way of doing so. But how do you know if bankruptcy is the right option for you? This article will shed some light into bankruptcy to help you determine if bankruptcy is the best option for your individual scenario.
Bankruptcy has some fairly serious financial consequences: a bad credit rating, increased difficulty in acquiring loans, and higher interest rates are just some of these. So it goes without saying, bankruptcy shouldn’t be taken lightly. There are many debt consolidating businesses that more than happy to assist you, which is similar to bankruptcy as all your debts are combined into one. This is usually considered a good alternative to bankruptcy as the financial penalties aren’t as serious. But the best way to learn if bankruptcy is the best option for you is to ask for specialist advice from bankruptcy experts. In the meantime, however, here are some signs that your financial position is in a critical condition and bankruptcy may be the best option for you.
If you don’t have any money in the bank and you’re experiencing a mountain of debt, then bankruptcy may well be the best solution for you. Even if you have the capacity to work a second job to increase your earnings, will this allow you to recover from your debts in the next five years? If no, then you should think of seeking professional advice about your position, as bankruptcy can be an attractive alternative. Filing for bankruptcy will relieve you of these debts and even though there are financial repercussions, it’s probably the best way to recover in this situation.
Making Minimum Repayments Only
If you can only manage to make the minimum repayments on your debts, then the interest on these debts will intensify rapidly and you should really consider bankruptcy before your financial issues decays further. With no supplementary income, it can often take up to 30 years to settle your debts by making minimum repayments only, so all the interest you’ll be paying over these years can really amount to massive sums of money. Although you’ll still be repaying 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 persistently hassled by debt collectors on the telephone and in the mail, it’s a sign that your financial scenario is deteriorating 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 highly discounted prices to debt collectors because they feel that you aren’t in a situation to settle these debts in an acceptable period of time. This is a clear sign that you should seriously think about declaring bankruptcy as it’s perhaps the best option for both your finances and your mental well-being.
Though there are some severe financial implications, bankruptcy isn’t the end of the world and in most cases, it’s the first step to financial freedom. When you’re confronting 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 find out what options you have. While there are many alternatives available to assist you in financial hardship, if you’re encountering any of these warning signs then chances are that bankruptcy is the best alternative to ensure you and your family can secure a prosperous future. In any case, if you’re experiencing financial difficulties, it’s best to talk to bankruptcy professionals sooner rather than later. For a confidential discussion concerning your financial circumstances, contact Bankruptcy Experts Albury on 1300 795 575 or visit www.bankruptcyexpertsalbury.com.au