Bankruptcy has it consequence; thus should be avoided at all cost starting with seeking debt counseling to finding alternatives to it. The alternatives are; settling the debt once and for all, liquidating your assets or taking a secured loan to pay the balance owing. To do the above should have experienced some of the following signs that show you that you are at the verge of bankruptcy. The earlier you notice the signs the best, for you will have ample time to prepare before the collectors come knocking on your door.

One of the common sign is when your cheques start bouncing and you receive countless phone calls from you creditor and banks asking for payments, the debt gives you emotional stress thus you lose sleep and concentration, you pile up lies about your statements or even hide them, start using the credit card to pay for everything, you have lost you source of income without having saved anything and you lose hope in life. If you fail to notice this signs know that you will be filing bankruptcy on credit cards very soon.

As a debtor to the credit card company you should never assume their efforts to contact you for it could lay good foundation for negotiations. Also you should never look at credit cards debt as the end of your life for most of the people have debts even bigger than yours. The dangers are the terms which include very higher interest rates on the defaulted amount.