Do
You Know the Warning Signs of Too Much Debt?
How
to Tell If You're In Over Your Head
Do you
know the warning signs of too much debt? Credit is great when it's used
wisely, but more and more Americans are getting in over their heads and
threatening their financial futures.
Just
because you can pay your minimum payments each month doesn't mean you
don't have a credit problem. Remember, low minimum payments benefit the
credit card company, not you. They are the means by which many people
become enslaved to their debt, taking decades to pay off purchases whose
prices have become grossly inflated by interest charges that have
accumulated for years. This is how credit card companies make their money.
Don't
allow yourself to be lulled into a false sense of security that you have
your debt under control just because you're not late on any payments and
you can manage the monthly minimums.
Here
are some of the warning signs that you have a credit/debt problem.
Warning Signs of Debt Problems
1. You
don't have any savings.
2. You
make minimum payments on your credit cards.
3. You
use credit cards for things you used to buy with cash, such as groceries.
4. You
use increasing amounts of your total income to pay off debts.
5. You
have more than two or three major credit cards.
6.
After you pay your credit card bill, you increase your balance by the same
amount (or more) the following month.
7.
You're at or near your credit limit on your credit cards.
8. You
count on the float in order to pay your bills, writing a check hoping that
you'll be able to cover it by the time it clears your bank.
9.
You're unsure of the total amount you owe on all your debts.
10.
You take out cash advances on your credit card to pay other bills.
11.
You've tried to make a purchase with your credit card and been declined.
12.
You've been denied credit.
13.
You bounce checks.
14.
You get calls from collectors.
15.
You lie to your spouse or other family member about your spending or hide
credit card statements from family members.
If you
realize that you are in over your head, the sooner you act, the easier it
will be to get out from under the burden of debt. There's no easy fix,
but it may be possible to turn your finances around if you work at it. If
you are to the point that you cannot pay the debt you should seriously
consider filing a bankruptcy to get out from under the stress of the debt
and debt collectors.
(see also
how much debt is too much,
effect of debt load,
what is debt load?)