Nobody really considers that financial problems can occur by taking on too much debt. This is especially true at the time they’re enjoying the pleasures of making new purchases. With a
good credit score, taking on new debt is incredibly easy. A new home, college loans, a new car, can all be obtained by slapping down a credit card. The list of goods we can purchase is endless and so is the financial hardship it causes. When it comes to getting into debt, how do we know our personal limits? How do we know if our spending has gone too far? What are the signs that tell us we should consider talking to an Oklahoma bankruptcy attorney.
The first sign that you’ve taken on too much debt is if you can’t pay it all off in 3 years. Add up all your debts and divide it by 36. That should be your self-imposed monthly debt limit, not the minimum monthly payments calculated by your loan companies. If you cannot pay this amount you need to talk to an Oklahoma bankruptcy attorney. You attorney can help you eliminate to restructure your loans. This will help to get you on a financially responsible monthly payment schedule. Attacking the problem at this stage can make the whole process easier. It will also help you to keep more assets that might other wise have to be surrendered in an Oklahoma bankruptcy.
I Cant Pay My Bills Should I File Bankruptcy:
If you’re unable to pay off your debts in three years, ask yourself “am I paying only the minimum payments?’ If this is the case, chances are your debt is increasing every month without you having bought anything new. Most people believe that the minimum payment will actually pay the debt off.
In reality the minimum payment isn’t even enough to cover the interest you owe on the balance of your debt. This will cause your debt to grow, not reducing it as you hoped. As a matter of fact, if you pay only the minimum, your debt could grow exponentially and potentially double every 7-10 years. Of course how fast it grows depends on the interest rate your paying. It’s not uncommon for some credit card interest rates to be as high as 18% and at that rate, your balance will double every 4 years if left to compound.
Other Indicators Its Time To File Bankruptcy:
Another good indicator that you should talk with a bankruptcy attorney is if you can’t even pay the minimum monthly payment. This is the final test of your ability to service your monthly debt payments. Since the recommended minimum payment is not enough to cover the interest on your debt, simply paying this low amount keeps you afloat but adds to your debt every month. Paying only the monthly minimum makes the monthly minimum increase every month without new purchases and eventually you will have to file for bankruptcy.
It’s better to file sooner than later before you have suffered under the weight and stress of ever-increasing monthly payments. lf you can’t meet the minimum monthly payment and you are getting those evening phone calls from bill collectors, maybe you should consider talking to an Oklahoma bankruptcy attorney because not being able to pay the minimum amounts on your debts will guarantee a bankruptcy is in your near future.
Contact An Oklahoma Bankruptcy Attorney:
If you have any questions or concerns regarding filing bankruptcy in Oklahoma we can help. Our Tulsa county lawyers have helped people file chapter 7 and chapter 13 bankruptcy cases. Call today for free bankruptcy information.