In 2015, nearly 800,000 Americans filed for personal bankruptcy, largely due to consumer debt such as credit card balances, car loans and mortgages. Before you swipe that credit card again, take note of these warning signs you could be on your way to going broke.

You ignore your finances. The worst thing you can do about debt is ignore it. Troubled finances won’t fix themselves, so start doing something today. If you’re struggling to make the payments on your car, mortgage or credit card, take a hard look at your expenses with apps like Mint.com to see exactly where you are spending your money.

You live paycheck to paycheck. Lack of an emergency fund and anxiously waiting for your next paycheck are big signs you could go broke at any time. An emergency fund can cover a financial shortfall when unexpected expenses crop up. Experts recommend stashing away a minimum of $1,000 while working toward the ultimate goal of saving a minimum of six months in living expenses.

You pay down credit cards with credit. Paying down credit with other credit cards or payday loans can lead to financial ruin. On average, credit card interest rates range from 10% to more than 25%. A payday loan can cost from $10 to $30 for every $100 borrowed. Instead, shave unnecessary expenses from your budget and use the extra to pay down high-interest debt.

You buy too much house. Don’t let your dream house send you to the poorhouse. Carefully evaluate your finances before you begin shopping for home mortgage loans so you know exactly how much you can afford for house-related expenses including the mortgage payment, taxes, insurance, repairs and homeowner’s association fees. Avoid looking at houses that are out of your price range when shopping for a home.

Reach Your Goals with City Bank

City Bank is here to help you manage your finances responsibly with flexible, low-rate personal loans and competitive home mortgage loans. We can even arrange to have your loan payments automatically deducted from your checking or savings account each month. Call us today at (800) OUR-BANK or contact us.