Many times people find themselves in financially distressful situations but are not exactly sure how they got there.  Often times it is a combination of factors that leads to this type of situation.  If you are able to recognize this early on, you may be able to avoid the consequences that come with these dangerous situations.  Below is a list of the top situations to look out for:

1. No change in spending despite loss of or decrease in income - Everyday people are being laid off or facing salary reductions/loss of hours just to keep their job.  You must be able to make tough choices when this happens.  Making difficult changes to spending now can save your family in the future.  Turning to debt to maintain your lifestyle is not a long term solution and will put you and your family at risk.
2. Living without a budget - By not monitoring income and expenses, you are setting you and your family up for financial ruin.  To compound the problem, people end up using credit cards for everyday purchases and then cannot pay the balance in full at the end of the month.  By setting up a realistic budget, making sacrifices where needed, you can know exactly where you stand and make changes where needed without turning to credit cards for help.
3. Changes in family structure - When major changes occur in the family, such as death or divorce, finances are often an afterthought.  The impact these situations have, however, cannot be underestimated.  A restructuring of the household budget must coincide with these changes in order to maintain financial stability in troubled times.  Having or increasing debt loads during this time is common and should be avoided if possible.

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