Jack P. Cranley, Attorney at Law

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The Warning Signs of Potential Bankruptcy in Maryville, IL

Late Payments

Going bankrupt is often associated with making the wrong decisions and generally being irresponsible with finances. There are, however, other reasons why you could go bankrupt such as getting a divorce, a death, or any other life-changing event. It is not always in your control. Here we will be discussing some warning signs to look out for that could indicate you are close to bankruptcy in Maryville, IL, and ways you can reduce your risk of bankruptcy.

Having Missing or Late Payments

Having consistent late or missing payments on your bills can happen due to not being able to pay them or being disorganized. Make sure that you change your spending habits once you notice this becoming an issue. Adjusting your spending habit should help your financial situation before the following month rolls around. Maybe it’s time to stop going out with friends for a couple of weeks or find a cheaper meal alternative. There are healthy ways to cut back your spending.

Bankruptcy Can Mean Maxing Out Credit Cards

It is easy to forget that while credit cards can be used to extend your income but doing so can be dangerous for you financially and may contribute to your bankruptcy. Make sure that you only put charges on credit cards that you know you will be able to pay off every month. This can help you improve your credit score and help you make financial success over time.

Only Being Able to Make Minimum Payments

Financial Law

In cases where you are only able to pay the minimum amount back to pay off your credit card every month, over time, it can lead to years of catching up to pay it all off. This can lead to you accumulating interest. This also applies to those who have taken out loans. If you take out a loan on furniture for example, at 0% interest for a year or two, only paying the minimum can cause you to accumulate more interest over time, eventually leading you to never being able to pay it off. Make sure to do research and consider your financial situation before you take out any kind of loan in Maryville, IL.

If you ever end up needing to file a bankruptcy claim in Maryville, IL, give our expert team over at Action Law Center a call today. We are here to provide the residents of the surrounding areas with our legal services.

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