Bankruptcies are more common than most people in Moncton NB realize. However, if you’re considering bankruptcy or are worried that you may need one in the future, it can be helpful to understand some of the common reasons that one is necessary. Plus, it can help you determine what you should be focusing on now to prevent requiring bankruptcies in the future.
Job Loss
Most bankruptcies occur in Moncton NB because of a job loss. While most employees will get a severance package, it may not be enough to cover expenses until you find more work. In some cases, people use their credit cards to pay for bills, until they are so far in debt that, even with a job, they wouldn’t be able to make payments.
While you can’t do much to ensure you keep a job, you can start saving money from each paycheck, so you have a large savings account in case of a problem later.
Lower Incomes
Sometimes, people are faced with the option of getting laid off or getting a reduced income for a period of time. They may have their hours cut back, lose benefits or be asked to take a cut in their salary. It can be harder to pay your debts, leading you into bankruptcy.
However, you can put money away for such a time, if you plan ahead. You can also try to lower your monthly expenses, if possible.
Credit Card Debt
Another reason that bankruptcy may be necessary in Moncton NB is when you have high amounts of credit card debt. It is easy to get lulled into a sense of safety that credit cards provide. You’ve got all this extra money at your disposal and only have to pay a small amount each month.