8 signs you’re flirting with financial ruin

I am totally sympathetic with the plight of financial distress.  I have been there.  The pain is ongoing and follows you day and night.  This situation is particularly difficult if you are retired and living on a fixed income.

1. Paying late fees and juggling bills

A serious symptom of financial distress is juggling monthly bills by making payments big enough and frequently enough to keep services flowing, but never paying balances on time and in full.

2. Counting on a future windfall

Basing your plans for financial stability on a future payoff, such as an inheritance, a run-up in the value of your home or a big tax refund

3. Multiple credit card hocus-pocus

If your credit card debt is consistently rising and you’re unable to make more than the minimum payments, your balance will continue to rise.

4. Fighting with your partner over finances

Most couples have occasional fights about debt, but if you regularly fight with your spouse about money, it can be a sign there’s not enough disposable income to finance the family’s spending.

5. Regularly paying overdraft fees

If you’re constantly incurring fees for overdrawing your checking account, you could be on the brink of financial disaster.

6. You have a savings rate of zero

If you’re unable to set aside a small amount of money for savings in your budget, your finances are on unstable footing.

7. Covering expenses with retirement savings

Borrowing or withdrawing retirement funds from your 401(k) is a common thread in many of the cases of financial distress.

8. Treating your home like a piggy bank

Such moves are especially ominous if they’re not due to a serious financial need but to a desire for “wants” like a vacation or a new car.

Read more: 8 signs youre flirting with financial ruin | Bankrate.com http://www.bankrate.com/finance/debt/8-signs-you-re-flirting-with-financial-ruin-1.aspx#ixzz1T8qjU5CZ