7 Signs you are giving a special invitation to financial disaster

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By: Good Nelly
on 26th Oct,2011

2. Whatever the reason is, late bill payments are not good for your financial health. As such, they will impose penalties and late fees upon you.
7 Signs you are giving a special invitation to financial disaster

Most of the people can't recognize the signs which indicate that they are running toward the debt disaster. If they could identify the ominous signs and interpret their meanings, then a large number of people could save themselves from being financially ruined. Read along to know about 7 signs that indicate that you're courting financial disaster.    

7 Telltale signs you are courting financial disaster

Here are the 7 signs that clearly indicate you are courting a financial disaster:

1. You are heavily depending upon a chance income:

Are you counting on a chance income such as lottery, tax refund, inheritance, etc. heavily? Do you think that a financial windfall is the answer to your financial problems? If yes, then it shows that you heading towards a big financial storm. Have you ever thought what will happen if you don't get a bonus from your office or win a lottery? You'll fall straight from the financial cliff on which you were standing.

2. You are habitually paying late fees to your creditors:

There can be 3 possible reasons behind the late payment of the credit card bills - (a) you don't have the money, (b) you are too busy, (c) you are extremely lazy. Whatever the reason is, late bill payments are not good for your financial health. It conveys the message to your lenders that you're not a responsible consumer. As such, they will impose penalties and late fees upon you. They will also not co-operate with you when you need money in future.   

3. You are having fights with your partner on money everyday:

Couples have fights on various issues everyday. There is nothing to be shocked about it. However, if the couples have regular fights on money issues, then it signifies that they don't have sufficient funds to meet family expenses.

If you and your spouse often quarrel about financial issues, then it shows that your financial footing is unstable. It reflects that your family is going through deep financial stress.

It is natural to be stressed when the creditors are running after you for payments. However, it will be a mistake to deal with the financial stress yourself. Talk about your problems to your spouse. Accept your financial mistakes and seek forgiveness from your spouse. Ask your spouse to help you in finding the right path to get out of financial problems. 

4. You don't have any saved money:

Despite your outmost efforts, you're unable to save a penny in your checking account or the emergency fund. It is a sign that your financial house is in a bad shape. Emergency expenses in the form of a sudden home repair can crop up any day. You can't avoid it. If you don't have any savings, then you'll fall into a sea of financial problems in future.

You may be counting on the credit cards for dealing with the emergency expenses. However, remember that the credit card companies may reduce your credit limit when they find that you are adding high charges frequently.

If you wish to be financially fit, then create an emergency fund, and contribute some money to every month. You can contribute some money towards it by changing your lifestyle little bit.  

5. You are trying to solve credit card puzzle but failing repeatedly:

Credit cards can prove to be your best friends when you manage them wisely. These financial tools can be used to make various purchases and earn rewards. However, they can become your enemy when you can't keep up with the payments. If your bill amount is increasing, and you only have the money to make the minimum monthly payments, then you're going to be in a big financial trouble.

If the outstanding balance on the credit card increases, and you fail to make any payment, then the creditor will hike the interest rate. He will impose late fees and penalties on you. In short, your financial condition will deteriorate.    

6. You are continuously borrowing money from retirement funds:

Regular withdrawal of funds from the retirement accounts shows that you are in deep financial distress. If you are accumulating more and more 401(k) loans with each passing day, then it means that you are mismanaging your finances greatly. It is a sign that you are not living as per your financial means. Depleting your retirement savings can bring a major change in your life. It can put your retirement years into jeopardy.

7. You are paying a lot of NSF fees lately:

If you're overdrawing your bank account continuously, then beware! It is not at all a good sign. It indicates that you're on the verge on the financial disaster. If you have been paying non-sufficient fund fees, better known as NSF fees since the last few months, then you're most likely to meet a financial storm soon. 

Sometimes, consumers are forced to overdraw their checking account for paying off their payday loan debts. If you belong to this class of people, then you need to take some immediate steps. Contact your lenders and try to set up a repayment plan. Otherwise, you may have to file bankruptcy to get rid of these high interest debts.

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