Are You a Poor Money Manager Or Are You Bankrupt? - How to Know the Difference
Everyone these days has money problems.
Problem is, many people have a hard time facing the fact that they may be personally bankrupt.
Bankruptcy is no longer the doom and gloom situation that it's been in the past.
But how do you know the difference between being bankrupt and being a poor money manger? If you don't have enough money to pay your bills every month, yet spend $200 at the hairdresser every month and MUST have the newest Prada bag: I would chalk that up to being a poor money manager and not having your priorities straight.
I am talking for people who are TRULY, TRULY out of money and whose options have run out.
Here are a few things you need to consider when you think you may be bankrupt: How much do you have in credit card debt and how many years will it take you to pay it off? Are you more than120+ days late on your mortgage? Are your bare minimum monthly bills more than you earn? Is there any ways to cut your spending in order to increase debt payments? Is there a chance you will get a new job or promotion that will increase your income in the upcoming months or inherit a large sum of money? Are you outstanding medical bills more than you can handle? Are there any assets you can sell (besides a 401k) that can reduce your debt load? Are you divorced and your ex filed bankruptcy, saddling you with their share of the martial debts? The only way to get a complete understanding of your situation is to write down your monthly expenses and income on paper.
BE HONEST.
Lying about your expenses and income will not help your situation.
Only a truthful examination will give you a truthful answer.
Cut out every frivolous item you waste money on and cut to a bare bones budget.
If you have cut all the expenses you possibly can and are still severely in the hole, you will need to face the real possibility that you are bankrupt.
Not only will you have to explore the possibility of filing bankruptcy, you will have to look deep inside you to discover what decisions you made to get you there.
Problem is, many people have a hard time facing the fact that they may be personally bankrupt.
Bankruptcy is no longer the doom and gloom situation that it's been in the past.
But how do you know the difference between being bankrupt and being a poor money manger? If you don't have enough money to pay your bills every month, yet spend $200 at the hairdresser every month and MUST have the newest Prada bag: I would chalk that up to being a poor money manager and not having your priorities straight.
I am talking for people who are TRULY, TRULY out of money and whose options have run out.
Here are a few things you need to consider when you think you may be bankrupt: How much do you have in credit card debt and how many years will it take you to pay it off? Are you more than120+ days late on your mortgage? Are your bare minimum monthly bills more than you earn? Is there any ways to cut your spending in order to increase debt payments? Is there a chance you will get a new job or promotion that will increase your income in the upcoming months or inherit a large sum of money? Are you outstanding medical bills more than you can handle? Are there any assets you can sell (besides a 401k) that can reduce your debt load? Are you divorced and your ex filed bankruptcy, saddling you with their share of the martial debts? The only way to get a complete understanding of your situation is to write down your monthly expenses and income on paper.
BE HONEST.
Lying about your expenses and income will not help your situation.
Only a truthful examination will give you a truthful answer.
Cut out every frivolous item you waste money on and cut to a bare bones budget.
If you have cut all the expenses you possibly can and are still severely in the hole, you will need to face the real possibility that you are bankrupt.
Not only will you have to explore the possibility of filing bankruptcy, you will have to look deep inside you to discover what decisions you made to get you there.
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