Debt doesn’t happen overnight. There are a series of happenings that could lead you to debt and it might be too late before you find out. If you happen to experience any of these signs, you might need to accept that you are headed for big debt trouble.
You lost track of how much you owe. Probably the first and most obvious sign that you have too much debt already is when you start to “forget” how much you owe. Once you start to ignore your debts, it could be a sign that they are getting out of control and you become afraid to face them.
You are late on your bills payments because you are short of cash. You’ll know that you have too much debt if you don’t have enough cash to pay for your bills in time. Unfortunately for you, this will lead to even higher debts as the interest charges and late payment penalties accumulate.
You borrowed money to pay your debts. Whether you took a cash advance or borrowed money from a friend, relative, or lender, it just means that you have more debt than you can handle. This is one of the most dangerous mistakes people do as you are basically just transferring your debt to another.
You haven’t been sleeping well. If you’ve come to a point that you are restless and can’t sleep every night, thinking about your debts and how to pay them, then that’s a sure sign that you have too many debts.
You avoid answering phone calls because it might be the debt collector. When debt collectors begin to call, this just means that your debts have become too big and unmanageable. While you can avoid phone calls for a while, you cannot avoid the actions that they may take, such as suing you.
You’ve emptied your savings. It doesn’t always mean that you have too much debt when you have no savings, but once you’ve drained them all trying to pay for your debts or just to get by, that’s an obvious sign of a problem.
Your work performance is affected. You know it’s serious whenever a problem reaches your workplace. But don’t let it go on, as the last thing you want is to lose your job, which will leave you even more broke than before.
You cannot pay for living expenses without a loan or credit card. If you use your credit card with everyday purchases such as the groceries, you are headed for trouble. It’s either you are not earning enough to sustain your needs or you manage your finances wrong. Whichever it is, you have to figure out how to increase your earnings or make them suffice.
You hide your spending from your family. There’s definitely a problem if you feel the need to hide your spending from your family. It’s either you know that you have too much debt or that you’re afraid they’ll stop you from your spending habits.