I found this information on practicalmoneyskills.com. It’s a great website for increasing financial understanding and options. I would highly recommend exploring the site; even if you feel that you are the best money manager in the world.
Reasons why consumers can’t pay
- loss of income (48%)
- Unemployment (24%)
- Illness (16%)
- Other (divorce, death) (8%)
- Poor money management, Emergencies, Materialism, Need for instant gratification
defective goods and services (20%)
- fraudulent use of credit (4%)
- other (3%)
Signs you are in Trouble
- You don’t know how much you owe.
- You often pay bills late.
- You get a new loan to pay old loans.
- You pay only the minimum balance due each month.
- You spend more than 20% of your net income (after paying rent or mortgage) on
- You would have an immediate financial problem if you lost your job.
- You’re spending more than you earn, using your savings to pay for day-to-day expenses.
First steps to take if you can’t pay your bills
- Take another (close) look at your budget and cut your expenses.
- Be realistic about what you can afford (the hardest) and
contact your creditors
- Tell them why you can’t pay, that you intend to pay, and when/how much you will be
able to pay.
- You may be able to work out a new payment schedule.