Personal Finance Advice

You’re not the only one who is trying to stretch your dollars a little further, but this does not mean that you should allow yourself to get into major financial trouble.  It’s one thing to occasionally use your credit cards to buy groceries or to refuse an invitation out with friends because you can’t spare the money to buy dinner at a restaurant, but it’s another thing entirely to fall into a pattern where you’re heading straight toward financial disaster.  Recognize the patterns as soon as possible so you can come to the realization that you need to make some major changes now. 

Do any of these sound like you?

You’re using payday lenders.  If you have resorted to utilizing payday lenders in order to make it through to the end of the month then your #1 priority should be to stop.  Payday lenders charge amazingly high interest rates and fees and can really throw consumers into a perpetual cycle of debt and dependence.

You are afraid to answer your phone.  When you fall far behind in payments you’ll notice a barrage of phone calls from the financial institutions you owe money to.  It’s not unfair that they want to know where their money is - after all, they did lend it to you - but if the ringing of your telephone makes your heart skip a beat then that is a pretty good indication that you need to make some major changes.

You couldn’t get a loan if you tried.  When you don’t pay your bills on time your credit score suffers, making it difficult to get approved for any type of credit product through a lender.  Subprime lending exists for people who can’t get approved for a traditional loan or credit card, but if your finances are in such disarray that you can’t even get approved for a subprime product then this is a huge red flag.

Bankruptcy seems like a pleasant alternative.  Bankruptcy can indeed provide debt relief in some instances, but it’s an arduous task that can be humiliating and expensive.  If you find yourself researching bankruptcy and thinking wistfully about how great it would be to get the process started, you need to figure out quickly how to get your finances back under control (even if that does mean bankruptcy).

You feel desperate.  Finances can take a huge toll on your psychological well-being.  If the thought of your financial situation makes you feel anxious, depressed or panicked then you need to make some serious changes right away.

Don’t ignore these signs.  Take solace in the fact that no matter how bad your personal finances get there is always a way to dig yourself out.  It may take a great deal of time and effort, but you certainly won’t improve anything by ignoring the huge red flags waving in front of you.