Insolvency, Insolvent & Solvency, these are words we have been hearing more often over the last 18 months or so. The first recorded use of the word solvent was 1653; to be solvent was to be able to pay all that one owes. Oddly the first…
Insolvency, Insolvent & Solvency, these are words we have been hearing more often over the last 18 months or so. The first recorded use of the word solvent was 1653; to be solvent was to be able to pay all that one owes. Oddly the first recorded use of Insolvent was in the 1590’s, 60 or so years before the use of Solvent. The use of these words were reserved for traders of goods, odd how civilization used the word for broke before we used the word for being able to pay ones debts.
If we stuck with the standard definition of Insolvent, we would all be insolvent and broke, as most of us have car loans, lines of credit, mortgages and carry balance on our credit cards. A more realistic definition of Insolvent would be; your liabilities are higher than your assets, you owe more than you own.
Some signs that you may be heading for serious debt problems, or Insolvency?
- Are you making only the minimum payments on your credit cards?
- Are you having difficulty paying your monthly bills regularly and on time?
- Are you using your overdraft most months?
- Are you using credit because you don’t have the money for everyday expenses?
- Are you uncertain how much you owe in total?
- Do arguments about money cause problems in your family?
- Are you charging more each month than you pay on credit?
- Are you over your limit on your credit cards, overdraft, or line of credit?
If you answered “yes” to any of these questions, you may be heading for serious debt problems. If so, you need to create a plan to resolve the situation and contact us today for assistance.
If you own your property and are experiencing debt issues, you need to get a plan of action as unsecured creditors are becoming more aggressive in their collections and are very successful at getting judgments and themselves listed on your land title as a secured lien holder.