One of the first signs of debt trouble ignoring the signs. This includes never opening statements or knowing exactly how much you owe. However, facing your debt is the first step toward handling it.
If you have a feeling you are headed towards financial collapse but aren’t sure of it, then it’s time to take a look at your spending habits and at your bank statements and figure out what you are doing wrong. Here are twelve signs that you’re clearly headed towards or are already in financial trouble.
1. Using credit cards for everyday grocery shopping instead of paying using cash or debit cards.
2. Almost always running out of money before the end of the month or even just immediately after payday.
3. You frequently pay most of your bills late.
3. You are considering refinancing your mortgage just to be able to pay off your bills or other debt.
4. Frequently skipping credit card payments or ignoring them altogether.
5. You only manage to make minimum payments on your credit cards.
6. You don’t have any money saved up for emergencies.
7. Your credit card takes your whole salary and you pay everything else by borrowing again.
8. You have a credit card from every provider.
9. You don’t actually know how much you owe in debt.
10. Your job is unstable and you have no considerable funds to live on should you be laid off.
11. You are considering diving into your retirement savings to cover monthly expenses.
12. You feel overwhelmed by the amount of debt you have already managed to incur.
If this sounds like you, it’s not too late to change. You can start living within your means, reduce your expenses, and stick to a monthly budget. Set up a savings account and ensure you put money in it regularly, especially after pay. Set up a stop order if you don’t trust that you will be able to do it yourself.