Living on a fixed income with the rising cost of every day necessities can be very stressful. You can quickly fall behind on paying for the common things you need to survive every day.

With new statistics coming out every week of more and more people, especially seniors, falling behind on paying their bills it’s important to know the warning signs to avoid being a statistic.

Here are 6 signs that you are headed toward a financial meltdown.

You have to choose which bills to pay

Every month do you dread getting the mail and finding all the bills that need to be paid? Are you deciding which ones need to be paid right away and which ones can go another month without being paid? Are you deciding between heating your home and paying for your prescription medication?  This can happen every once in a while, but if it is happening to you monthly, it is a sign you are having financial difficulty. 

You use credit cards to pay bills

If monthly bills are rolling in and you are paying them with a credit card you are in a financial trouble. Robbing Peter to pay Paul only puts a small band aid on the problem. It will only solve it for a while, but sooner or later that credit card bill will have to be paid. Chances are if you are using it to pay other bills you are only making the minimum payment on that credit card larger and larger.

Your emergency fund is low or is at zero

Many financial experts say you should have at least six months worth of income saved for an emergency. For a senior, it makes better financial sense to have at least a year saved up since you don’t have income of someone who is working. If your emergency fund is low or nonexistent, it is time to start stashing away some cash right away.

You can barely afford to make the minimum monthly payment

If you struggle to try and make the minimum monthly payments on your bills, it’s a sure sign you are in financial trouble. Just paying the minimum balance on credit cards barely makes a dent in the balance. If at all possible try and make at least double the minimum payment to make an impact on the balance.

You keep overdrawing your checking account

If it happens a few times a year, that’s understandable. If it happens a few times a month, you are in a desperate need to overhaul your budget. It is possible you may have too much debt or your income does not meet your needs. Whatever the reason, you need to design a  budget and stick to it. This can help you understand where your money is going and help you to make better financial choices.

Your credit score is below 620

One of the most important numbers in your life is your credit score. If your score is below 620, you can be in big trouble. When you have a lower credit score it becomes more difficult for you to get credit, among other things. Be sure to get your credit checked at least once a year to make sure everything is up to date and correct. If you see any errors on your credit report, fix the errors as quick as possible.

If you are struggling with two or more of these financial warning signs you could be headed to a financial disaster. One of the best options for seniors who are struggling to make ends meet is a Reverse Mortgage. With a Reverse Mortgage there is no credit check or monthly income requirement. As long as you are 62 or older you can access the equity you have built up in your home with a Reverse Mortgage. You can use that equity any way you want. A Reverse Mortgage can give you that little extra room in your budget you may need to help make retirement living a little more comfortable.  You can choose to take your payments in a few different ways, whichever is best for your situation. Call one of licensed professionals today; they can walk you through the smooth and easy process.

Tags: Avoiding Financial Issues, Credit Card Bills, financial options, One Reverse Mortgage, ORM, Signs of Financial Trouble, Warning signs of financial trouble