Being in debt can be a serious issue. Financial problems can follow you for the rest of your life. In this economy most people live paycheck to paycheck and find themselves utilizing lines of credit to fund other situations that may come up. The following are ten signs that you may be facing debt problems.
If you find yourself spending more than 20% of your net income on credit card bills then that is a clear sign that you are in financial trouble.
-You are receiving calls from creditors regarding your bills that are overdue.
Receiving calls from creditors means you are behind on making payments. Once you fall behind on making your monthly payments it is harder to recover.
-Your credit limit has been reached on some or all of your credit cards.
Credit cards should be used to pay for unexpected situations. Using credit cards for daily purchases such as groceries, eating out, or movie tickets may mean that you are living outside of your means.
-You borrow money to pay off other debts you have.
If you find yourself borrowing money from family, friends, or even another creditor to pay off debt is a sign to serious debt issues. While paying off loans is good, borrowing will just put you in the same debt, except with owing a different loaner.
-You pay only the minimum amount due each month on your credit cards.
By doing this, you are only working on paying the interest.
-You have three or more credit cards that you use regularly.
It is recommended to have two or less credit cards that you are able to pay off regularly. By having more than two just guarantees that you are putting yourself further into debt.
-You are unsure of how much debt is owed to all your creditors or loans.
Be aware of how much debt you have amassed.
-You have been sued by creditors and have faced repossession or a wage garnishment.
Being sued by creditors or having a wage garnishment to pay your debts is a serious sign of not being in control of your financial life. The creditor may take you to court and can take your assets or put a lien against any property you may have.
-You do not have any savings.
Having a savings account will benefit you more than spending beyond your means on a credit card.
While these are signs of serious debt issues, it is never too late to turn your situation around. Admitting to yourself that you have a problem managing debt is the first step to helping yourself. Create weekly budget for yourself and track your spending. Find where you can make reasonable cuts and stick to your budget. By doing so you may find yourself slowly paying off debts while not accumulating more. Be sure to live within your means and spend only what is necessary. If you find yourself addicted to spending, a group called Debtors Anonymous may be able to help you.