A lot of people are facing financial debt because they refused to recognize the signs. In fact, there are usually warning signs that indicate the impending problem – bankruptcy.

Do you know the major red flags of financial trouble? Check out the following:

Using your credit cards for everyday purchases.

Are you using your credit to pay for the littlest items? Do you frequently charge unexpected purchased to your card? Do you find yourself charging necessities such as food, electricity, gas, etc. to your credit card? If so, then clearly there is an issue with your budgeting and you may be at risk of debt accumulation.

Making only the minimum payment.

Do you prefer to submit only the minimum due payment required by your Issuer? If that’s the case, you are adding up burden to yourself. Keep in mind that carrying a balance in your account would mean additional interest rate fees that may range from 15% to as much as 20% from the original sum of your debt.

Not paying on time.

Do you constantly skip your due dates? If you normally wait for your next bill or the disconnection notice before submitting your payment, then of course, you are putting yourself in trouble. Missing your payments would make it harder for you to keep up with your commitments, in addition to the late fees that you will incur.

You often get into arguments because of money matters.

If the matter of debt or finances affect your relationships with your family and friends, then step back and examine your situation. It is never too late to seek out a solution to the problem. And through the support of your loved ones, it should not be so difficult to regain control over your finances.

You are not aware of the status of your debt.

Are you aware of exactly how much you owe each of your creditors? Do you review your billing statements to make sure that all your charges are accurate? If you do not know what your real real debt situation is, then obviously you have not been paying much interest on your obligations. Eventually, this kind of practice could lead you to bad debt.

Borrowing cash from your credit card.

Do you often take out cash advances from your credit card whenever you run out of cash? Credit card issuers typically charge a higher rate of interest on cash advances than the rate applicable to purchases or balance transfers. Remember that there is no grace period so the rate of interest is immediately included in your bill as soon as you withdrew the money.

Maximizing your credit limit.

Do you tend to use your credit cards until you reach your alloted credit limit? Do you exceed your limit? If yes, then you could be living beyond your means.

You get calls and notices from your creditors.

When you are beginning to get calls and notices from your lenders, reminding you about your past due debts, you may already be stuck in bad debt. If you don’t act now, you might end up with not much alternative but to declare bankruptcy. Do not delay. Analyze your situation immediately, make adjustments and work towards a solution.