Warning Signs of Bad Debt

There is “good” debt, and then there is “bad” debt. “Good” debt is relatively common and based on essential parts of our lives, such as student loans and mortgages, while “bad” debt can stem from a variety of sources and often involves paying large amounts of unnecessary interest which could have been avoided. Your debt should be manageable and planned for, but when it grows out of control due to the wrong financial habits, it may be time to make changes and consider a fresh financial start.Here are some potential warning signs that debt is severely impacting your life:- You are only able to make minimum monthly payments on credit cards;- You have accounts which are currently in collection;- You are behind on payments for your house, rent, or vehicle;- You are frequently charged late fees and penalties;- You lack savings funds or have stopped contributing to your retirement plan;- You rely on credit to stay afloat.If you are struggling with debt and considering filing for Chapter 7 bankruptcy, you’re not alone.Contact an experienced bankruptcy attorney today for a free consultation.