17 Warning Signs of Excess Debt

There are various red flags which can warn of debt problems. Knowing how to identify them can help you ward off trouble before it gets even worse. Consider whether any of the following warning signals apply to your current financial situation:

1) You regularly make only the minimum monthly payments on your credit card balances.

2) One or more of your credit card balances hover near the maximum limit.

3) You often use credit cards to pay for basic necessities.

4) 20% or more of your income is used to repay your unsecured debts.

5) You are regular in paying your debts but make little headway because of interest charges, and perhaps penalties and late fees.

6) You borrow from credit cards, savings, or friends and relatives, to pay other bills.

7) You don't have any idea of how much debt you are actually in.

8) You've resolved to pay off your credit cards but continue to make purchases on them.

9) You sometimes pay bills late or miss payments entirely.

10) Much or all of your paycheck is spent before you receive it.

11) You dread or avoid opening bills you've received, or answering your phone, to avoid debt collectors.

12) You get depressed and/or lose sleep when you think about your financial situation, and you think about it for many of your waking hours.

13) You hide the truth about your debts from friends or family.

14) You apply for new credit cards because your existing cards are maxed out.

15) You are declined when you apply for additional lines of credit.

16) You have no savings available to fall back on, in case of emergencies.

17) You spend more than you earn.

The more these symptoms are true in your case, the greater your risk of soon being in over your head in debt, if you aren't already.

It's important that you take positive action to deal with your debt problem as soon as possible, because the longer you put it off, the worse financial condition you'll end up in.

Not only may additional costs continue to accrue, but your credit rating can be damaged, and collection efforts (not to mention stress and worry, among other negative consequences) are most likely to continue.

The first step toward solving a problem is admitting that it exists, instead of denying it or trying to justify it (as many people do in order to cope with the stress). Sticking our head in the sand and ignoring our debts will not make them miraculously go away but will only make your financial situation worse.

Be honest with yourself: Admit that you have a debt problem, and then resolve to get rid of it.

Fortunately, all is not lost. The fact that you've taken the time to read this is a good sign that you want to solve your debt problem.

Take heart. You can (and should) take action toward becoming debt free. It's not as hard as you might think, as many other people have discovered. And the rewards can be substantial, making it well worth the effort.

Article Source: http://www.yournetadvisor.com

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