It may seem strange for some, but being in financial trouble usually doesn’t sink in, not until it’s already too late. For most people, being in financial trouble would usually mean that the debt collectors are piling up on your front door, calling you in the late hours, or making their presence felt via service disconnection or summon letters. But did you know that there are other indicators when it comes to being in financial trouble. Here are a few major examples to look out for:
1) You have no emergency funds.
Okay, so you technically do not have debt collectors bothering you, but that doesn’t mean that they are not ready to hassle you once you encounter sudden expenses (leading to debts). May it be accidents or natural calamities, emergency funds are a must, and having little to no reserved funds would spell trouble for you, especially as hospital bills are on a sky high nowadays and that they mostly charge a penalty for late payments.
2) You have an outstanding credit history.
Having a negative credit record would mean that applying for future loans would result to smaller chances of approval. Lenders are very strict when it comes to loan applications and a negative credit score would indicate that you are not exactly the most trustworthy person that they could lend their money to.
3) You are paying off your debts with other debts.
This is not the right way of paying off past obligations. You’ll just be going in circles, not having any amount to put into your savings account. Find other means to pay off your debts. Work part-time perhaps, or request for a few extra hours in your regular job, but never borrow money just to pay your debts. It would lead to more debts in the long run, and you’ll be trapped in payments rather than earnings.
4) Your monthly earnings are just enough to get by.
Simply put, you have no savings. What you’re earning every month is just enough for food and utility bills. This shouldn’t be your financial situation, but rather, you should have the breathing space to at least spoil yourself every once in a while. Having the chance to set aside even a small percentage of your monthly earnings would mean that you’re financially ready for any unforeseen expenses or purchases in the future.
5) You have no insurance.
You may ask, “What does insurance have to do with my current financial status?” Well, it may have no indications as of now, but it may very well affect your future. Insurances (depending on the types and coverages) would ensure that huge amounts of your future expenses, especially those which arise from unforeseen situations, would be taken off your load. Think of it as a way of protecting your current financial status from turning into a future financial trouble. You might say that, “Well, I have no extra cash to invest in any form of insurance.” That statement alone is enough indication that you are indeed within the category of financial trouble. Do what you must in order to gain a little extra every month, enough to invest on a worthy insurance coverage.
With all of that in mind, one may wonder if they can find just the right insurance to fit all of their needs. Well worry no more, as here in Cebuana Lhuillier. We offer our Alagang Cebuana Plus Gold, a microinsurance product designed for individuals aged 7 to 70 years old with coverage of Accidental Death/Dismemberment & Disability (ADD&D), Fire Cash Assistance (FCA), rider benefit for Unprovoked Murder and Assault (UMA), and a micro-life insurance. ACP Gold is a 24/7 Personal Accident Insurance with worldwide coverage. For as low as P40, each certificate is valid for four (4) months and can be availed up to a maximum of five (5) certificates per insured. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we promise fast, easy and secure transactions.
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