Do you consider yourself thrifty, frugal and good with money? If so, then congratulations, as not every Tennessee resident would say the same! Some people are naturally fiscally minded, while others consider themselves financially challenged in more ways than one. Perhaps you fall some place in between with good years and bad years, or even good weeks and then a few not so good. So many factors go into an individual's financial situation.
You must, of course, take into account the overall state of the nation's economy. You also have your local economy to consider, and your personal and professional needs and goals. All these things (and more) combined comprise your particular financial status. With that in mind, there are several concerning issues that place you at risk for serious financial trouble.
Warning signs that financial crisis may be looming just ahead
Just because you don't have wads of cash stashed in your wallet on a given day does not necessarily mean you are not financially stable. Like many successful businesses, individuals and families also experience cash flow problems from time to time. However, if you experience one or more of the following situations, you may be facing more than just a temporary financial bind. There may be long-term trouble ahead:
- If you recently had a setback in pay (a lot of companies are cutting incomes these days), it's understandable that the sudden loss of income may negatively affect your overall financial situation.
- Medical expenses are typically high on the list of reasons people go bankrupt. In fact, statistics show that more than 60 percent of bankruptcies filed in the United States have something to do with exorbitant medical debt.
- Perhaps your job is secure, but your spouse suffered an expected termination. There's no way of telling how long it might take to recover from an untimely financial loss. It takes months to get back on your feet following a sudden job loss.
- Do you like to shop? If so, you're definitely not alone. You're also not alone if your spending has gotten somewhat out of hand and your mail usually contains notices regarding credit card debt.
- Lifestyle changes have a way of causing financial crises as well. If you recently divorced, you likely have a firsthand understanding of that.
- Even in your day-to-day life, an unforeseen expense here or there is sometimes enough to tip the scales in a not-so-good direction concerning your finances.
Always living on the financial edge? There are probably problems ahead.
It's one thing to have a rough month where you're late on your mortgage payment or phone bill. It's quite another to receive a threat of foreclosure notice or have your phone ringing off the hook from angry and aggressive creditors trying to collect payments for debts. It's good to know there are resources available to help build a successful debt relief plan.
Many Tennessee residents turn to experienced bankruptcy attorneys for help when their financial problems seem to outweigh their possible solutions.