Being in debt can be extremely stressful. The pressure of being in debt makes it hard to worry about everyday living expenses. If you’ve been receiving phone calls and letters from creditors it makes even worse. Sometimes debt can be so bad that you have to consider filing bankruptcy because of the debt load. Before the debt begins to pile up, there are warning signs that you could be headed for trouble.
- It becomes difficult to pay normal expenses.
- It becomes increasingly difficult to make ends meet each month.
- You are spending more money than you earn.
- You find yourself using credit cards to pay for normal expenses such as groceries.
- Your credit card balances continue to increase.
- You have several credit cards that are at or close to the credit limit.
- You begin decreasing your monthly credit card payments.
- You are juggling credit card payments, holding off one credit card to pay another.
- You dip into your savings to cover non-emergency expenses.
- You find it hard to save even the smallest amount of money each month.
- You are receiving calls or letters (or both) from creditors and debt collectors.
- You are unaware of how much you owe and are fearful of finding out.
- Credit cards become a necessity rather than a convenience.
- You have to borrow money to pay your monthly bills.
- You apply for new credit cards because you don’t have any money.
- You hide how much you are spending from your family and friends.
- You have recently been denied for a credit card or loan.
- You have no way of paying for unexpected expenses like car repairs.
- You have considered filing bankruptcy.
- You put off going to the doctor or dentist because you cannot pay the co-pay.
If you answered yes to one or more of these warning signs, then you could be headed for debt. Hopefully, you are early enough in the stages of debt that you can take preventative action.
Start budgeting. Chances are, if you’ve been having trouble paying bills and other expenses each month, you haven’t been living by a budget. What better time to start than now.
Cut back. Use your budget to evaluate your spending. Take note of leisure expenses such as movie rentals and restaurant dinners.
Get help. Seek out consumer credit counseling to assist you in paying off your credit cards.
