Los Angeles Financial Stress Lawyers
Millions of Americans are struggling financially, but not all of them are aware of it. Easy credit allows many people to live beyond their means for years, and they juggle payments until one day they realize they can’t. By identifying symptoms of financial stress, consumers can take control of their lives before everything falls to pieces. At Wadhwani & Shanfeld, our Board-Certified bankruptcy specialists have helped countless people achieve a fresh start. Below, our Los Angeles financial distress lawyer identifies the most common red flags that consumers are headed toward financial ruin.
Are You Feeling Financial Stress?
Pay close attention to the following signs:
- You can’t sleep at night thinking about money. This is a common situation. Chances are you are living paycheck to paycheck—or even beyond your means. You should find a quiet moment to take out all your bills and see if you can cut expenses.
- You borrow to pay monthly bills. You should make enough each month to pay your rent or mortgage, as well as groceries, utilities, gas, insurance, and medical care. If you are using a credit card—and not paying the balance off in full each month—then you are in financial distress.
- You borrow to make your monthly credit card payment. This is a huge flashing red light. It makes no sense to borrow to pay debt. In fact, you will soon see your finances spiral out of control. The only exception is if you took out a balance transfer at a lower interest rate. For example, you might have credit cards with balances of $500, $1,000, and $1,250. You transfer them to a card with a 0% interest rate for 18 months. That will save you money in the long run and allow you to pay off debt faster.
- Collection agencies are calling you. This means you have defaulted on debts—probably because you didn’t have the money to pay on time.
- You take out a payday loan. These loans have sky-high interest rates. Many people turn to payday loans because they have no other choice, usually because of poor credit. If you find yourself driving by the local payday lender, then you are in financial distress.
- You feel physically ill thinking about money. This means that your distress is acute. Many people lose weight, their hair falls out, and some even lose hearing. These are signs of intense distress.
If you are experiencing financial stress, you should review your options. Credit counseling works for some people, while others can create a budget on their own or increase their income to finally get on top of debt. However, it’s important to be realistic. Some debts are so large that the sensible thing is to wipe them out in a bankruptcy filing.
Call Wadhwani & Shanfeld with Questions
We have helped more than 25,000 people review their debt and choose a path to financial freedom. Please contact our firm to speak with a Los Angeles financial stress lawyer today.