00:01
Financial distress can manifest in various indicators that signal a potential or ongoing financial problem.
00:08
These indicators may vary depending on whether you're looking at individuals, businesses, or even entire economies.
00:15
So since you're not specifying, let me just talk about the...
00:22
Well, let's start with individuals.
00:26
And it'll identify all three.
00:32
Indicators for individuals would be high debt -to -income ratio.
00:37
So when an individual's debt payments are a significant portion of their income, it can indicate financial strain.
00:44
Late or missed payments.
00:47
Low credit scores.
00:50
Maxed out credit cards.
00:52
No emergency savings.
00:54
Constantly living paycheck to paycheck.
00:56
So that's being unable to save or invest due to spending everything that's being earned.
01:04
Foreclosure or eviction notices is an indicator.
01:09
Collection notices from collection agencies.
01:13
Using payday loans is an indicator.
01:15
That's relying on high -interest payday loans for immediate cash needs.
01:21
Some indicators of financial distress for businesses would be declining revenue.
01:33
A negative cash flow...