How You Can Tell You Are in Debt Trouble
Many people find themselves in serious debt trouble. The key is to get on top of it before it becomes really serious. There are some things that you can watch out for. These things will tell you that debt troubles are on the horizon, and that you should take some steps in order to make sure debt stops. It can be one of the best things you can do for your finances.
Are These Familiar?
Credit card balance rising, income lowering – This is obvious enough. If you spend more then you make each month you will soon find you are in trouble. You cannot keep doing that. How are you going to pay that off anytime soon? It is just common sense that you should not spend more then you make.
Using credit card to buy food and gas – If you need to use credit to pay for these small items, then you are running out of money. You really need to look again at what you are spending money on. Once or twice is alright, but if you are using credit to buy food for a few months, then take note and do something about it.
You are near the limit on each of your credit cards – If you are using all the credit you have possible, then reexamine your spending habits. Are you using credit on things you actually need? Why are you using so much of your credit at one time? How soon until you start to go over your limit on the cards?
You do not know what you owe – This is just dumb. I know it sounds harsh but you should always, always, always know how much you owe. Not knowing how much you owe is a great way to fall behind and never recover. Do not turn a blind eye.
You charge more every month then the payments you actually make – You will never see an end to your payments if this is true and continues for a long time. Ok, one month you may not be able to pay the entire bill, but that should be about it.
You work overtime just to keep up with credit card payments – Nobody likes to work overtime if they can help it. Working overtime to get money for a mortgage is a lot different then working overtime just to keep up with credit card payments. If your payments are so high you need to work overtime, then you need to rethink your spending habits.
Debt = Trouble
Note the signs of debt, so when they arise you can stop it immediately. You do not want to realize debt is coming, but ignore it. The effects of debt are really troubling, and you might not realize this now, but you do not want to be a part of it.
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