A Leading Cause of Bankruptcy: Missing Early Warning Signs
The Association of Consumer Credit Counseling Agencies (AICCCA) released some information concerning the recent increase in non business bankruptcy filings.
The press release discusses the fact that filings have increase by more than double since 2006 to 2009 and that the numbers of consumers seeking assistance from Credit Counseling services have dropped from 20-25 percent down to only 7 to 8 percent.
The press release, which can be found at www.aiccca.org, warns that if you are experiencing more than two of the following warning signs, seek help now:
- Carrying credit card balances in excess of 10 percent of your annual income.
- No money or an inadequate amount put aside in savings. An emergency savings cushion of three to six months of living expenses is crucial to staying in good financial health.
- Using credit to purchase basic essentials. If you buy gas, groceries, prescription medicines or other essentials with your credit cards without a plan to repay in 90 days or less, chances are you are living beyond your means.
- Can only afford to pay minimum payments. To pay down as much of your debt as soon as possible requires substantially more than the minimum monthly payment amount due.
- Would be in immediate financial crisis with any disruption in income.
If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.
1-877-OUT-DEBT (688-3328)
Debt Reduction Services and the National Financial Education Center
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Rick has worked in the Consumer Credit Counseling industry for nearly 10 years and has spent over 7 years working for Debt Reduction Services as their Marketing Manager.