Oftentimes, if you are starting to question that you have too much debt, chances are, you do. Credit cards, mortgage, car loans, they can all add up and turn into a big issue. This can lead to alarming situations, such as missing bill payments, not being able to save money and borrowing more just to cover basic expenses. Below are a few signs that show you may be having more debt that you can handle.
Always Paying Your Bills Late
Not being able to pay your bills on time, because you can barely stretch your income from month to month is a real alarming signal. Sure, everybody has had financial difficulties from time to time, but if this happens for many months in a row, you may want to take a closer look at your monthly spending habits and see what you can cut down in order to afford bill payments. Paying late will unfortunately only lead to higher interest charges and make your debt problem worse.
Avoiding Phone Calls
If you fear that every time your phone ring, it might be a collection agency looking to speak with you about your debt, your situation might be worse than you think. You can manage to avoid calls form a debt collector for a while, but underestimating your creditors is not a good idea. They can choose to sue you for the amount you owe and, if they win the lawsuit, they may be able to obtain court permission to levy your bank account, garnish your wages or seize your assets in order to cover your debt.
Your Finances Affect Other Aspects of Your Life
If you find yourself having trouble sleeping because of your financial situation, this is a sign that your debt may be out of control. Money should not affect your sanity, health or personal relationships. In order to avoid debt taking a toll on your mental and physical health, stop avoiding the inevitable and make a plan to deal with it. Not being able to focus can affect your work performance as well and losing your job is the last thing you need right now.
Hiding Your Spending Habits
Hiding your unhealthy spending habits from friends, family or your partner is more than a sign that you have a financial issue. Ask yourself why do you feel the need to hide this form them. Chances are, you know they would disapprove, especially because you can’t afford so many expenses. If you are ashamed or afraid of what they would say, this may even be a sign that you have a compulsive buying disorder, or worse, debt addiction.
You Can’t Afford Living Expenses
If you’ve reached a point where you can barely afford living expenses without a credit card or a loan, there is no doubt you have too much debt and getting into more will not help your case. In order to get yourself out of this situation, you have two options: cut down on expenses or increase your income. You can start by reviewing your expenses and cut down unnecessary ones. In order to increase your income, start looking for a second job or a better paid one.
