Debt Warning Signs

Many times we don't see the signs of a financial trouble until it's too late. But a debt crisis doesn't occur overnight. There are many warning signs that may indicate that your debt situation may be getting out of control. Following are a list important warning signs:

1. Do you pay only monthly minimums or occasionally miss payments on charge accounts and credit cards? Are your cards nearing or over your available credit limit?
2. Do you depend on overtime or multiple jobs to cover monthly bills?
3. Do you often borrow from friends and relatives or depend on cash advances to cover basic expenses or pay your credit obligations?
4. Do you find it impossible to save money or find yourself exhausting savings as a way of supporting your debts?
5. Do you often float or bounce checks, hoping that checks you've written don't clear the bank before payday?
6. Can you account for the total amount of debt that you owe? Do you avoid adding up the total of the amount of your outstanding debt or purposely hide credit card bills from family members?
7. Are you considering, or have you consolidated debts by borrowing from a high-interest lender?
8. Do you panic when faced with an unexpected expense, such as car repairs?

If you find yourself struggling with any or all of the items listed above, you may be living beyond your income, depending on credit, cash advances, or loans to maintain your lifestyle. If you're stretched to the limit financially, you may find that when unexpected expenses arise, you can quickly lose control of your already shaky financial situation.

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