Warning Signs You Have Too Much Debt
There are few of us who haven’t used credit in the past; many of us will even be in debt now. This isn’t always a problem – as long as you can manage your debts and still be able to live comfortably, it’s fine.
However, debt can, for many people, as I’m sure you’ll know, be a major problem. It can take up all their cash and leave them unable to provide for their families. If you’re experiencing any of these common warning signs, then you’re likely to be in danger of having too much debt and falling into the same trap…
You Have a High Debt-to-Income Ratio
This one’s pretty obvious, but if your debts (not counting any mortgage you might have) total more than around 20 percent of your monthly income (that’s net, not gross) then you probably have too much debt. Obviously, it’s not an absolute because, perhaps you’re able to live cheaply due to a small mortgage or lower than average living expenses, but it’s something to keep an eye on and try to deal with if you can – don’t keep adding to your debt!
You Need to Use Credit to Live
If you’re forced to pay for groceries with your credit card or take out a loan just to pay the rent, then it’s a pretty big red flag that your debts are getting dangerously out of control and you might want to look into debt consolidation at debtconsolidation.co or speak to a debt counselor to help you get back on track. If you just keep doing what you’re doing, things are only going to get worse!
You’re Always Dipping Into Your Savings
If you can’t remember the last month when you didn’t need to dip into your savings to pay for an unexpected parking ticket, or even worse for food and rent, and that was because your credit card bill was so huge, then you have a problem and you aren’t going to be able to weather any more financial storms unless you take action and get on top of your debts right now.
You Can’t Pay the Balance Each Month
If you can’t afford to pay off the balance of your credit card each month, but you’re still spending a small fortune on covering the interest costs, then you have too much debt and you might want to look into consolidation or transferring your balance to a zero percent (or low rate) card. By doing this you can take a break from interest and start putting a dent in the actual debt.
You’re Always Paying Late or Using Debt to Pay Debt
Perhaps, the most worrying warning sign of them all is when you can’t afford to make even the minimum payments, and you resort to using money from one credit card to pay off another. This is highly unsustainable and highly likely to get you into a huge amount of debt. It’s time to talk to a debt counselor.
If any of these warning signs have set alarm bells ringing for you, seek help now before your whole financial world comes crashing down around you!