Life can look like a scary nightmare when you are submerged in debt. You are certainly not the happiest man on earth when the accusing fingers of your creditors are constantly pointed at you. However, it is possible to defy financial adversity and come out of debt. Your job will become easier if you acknowledge the problem before it becomes a menace. It is important to understand at the right time that your finances are getting out of control. So watch out for the following warning signs before your monetary condition becomes truly critical:
You Use Credit Cards to Buy Everyday Items
You need to do what you should do to feed your family. But if you have to buy groceries with a credit card then it’s a sign of a deeper issue. It indicates that you do not have enough money to sustain your lifestyle. So either increase your income or live by your means. Also, if the balances are getting high and you are over the limit on one or more credit cards then it reflects the fact that the situation is alarming.
You Stop Taking Phone Calls as it Might be the Lenders
This happens when your accounts have become delinquent. To be more specific, you can no longer make payments to your creditors. You are desperately trying to evade the lenders by avoiding their calls even though you know it’s futile.
You Borrow Money to Make Monthly Payments
When you start borrowing money from relatives, friends or take payday loans to save your neck then you definitely have too much debt. You refuse to accept the fact that you cannot borrow your way out of debt. This exhibits that excessive debt is affecting your rational reasoning.
Your Work Performance Has Taken a Hit Due to Debt
If your financial troubles are following you to the workplace then it is surely a warning sign. A performance drop is surely an indication of too much pressure due to (in this case) excessive debt. Possibly it is time to act smarter because losing your job at a time when you need it the most will make only make things worse. Likewise having sleepless nights is also an omen. Although it is difficult but try to stay calm and stress free even in a difficult climate. It will help you to clear the dark clouds of debt.
You Embrace Alcohol or Narcotics to Escape the Real World
It is certainly not a good sign if you turn to drugs and alcohol to remain oblivious of the mess you are in. It means you have given up and think that there is not even a remote possibility to get out of debt. This again is a proof of the terrible financial condition you in and what debt can do to human psychology.
You Lie to Friends and Family About Your Spending Habits
A person lies to his loved ones about his spending only when he is in the red zone. You know that your nearly empty pocket does not support unwise financial habits. So you start hiding facts from friends and relatives. This clearly shows your economic state as well as how addicted to debt you are.
You Savings is Nil
If you have drained your savings to make ends meet or to pay off your debts then better understand that there is a problem. It simply means that it is taking every penny you earn to survive. Try really hard to save money even if the amount you contribute is absolutely insignificant. Otherwise you may have to look for a bankruptcy attorney or debt settlement lawyer.
You Pay Your Bills Late
Does your bill include more late charges than before? Well, you are probably driving down the danger avenue. Living paycheck to paycheck is a reflection of the fact that you do not have enough money to pay the credit card bills and similar stuff.
Anyone can fall into an economic abyss. Knowing some warning signs of encroaching debt can stop you from sinking deeper in debt. So keep the above points in mind and stay alert. Good luck.
David Brown is a content writer with Oak view law group. He writes on a variety of finance related topics with a strong focus on debt.
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Got any suggestions for pulling yourself out of the abyss that is debt once you’ve noticed these warning signs?
Your first item, “You Use Credit Cards to Buy Everyday Items”, is misleading as written. Assuming the balance is paid off in full, this practice can actually be quite lucrative given the various reward points systems available on cards.
Great advice. That’s why I also don’t accept credit cards. I mean I don’t want to be tempted to use credit cards coz I know in a month’s time I’ll full of debts.
The post is fine but I feel you could have suggested ways of improving one’s financial condition. I feel if you want to manage your money it is important to plan a budget for yourself. This way you can save your money and prevent running into debt.
I use credit cards for every purchase I make! But it’s to earn 1%-5% cash back so I think it works.
“You Use Credit Cards to Buy Everyday Items”
I use my credit card as a substitute for cash not credit; hence, I do not need to carry cash with me reducing the risk of an expensive mugging and have a record of purchases that can be reviewed for budgeting or viability.
The key is to ALWAYS pay the monthly credit card bill on time and in full.
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