20 Warning Signs Of Too Much Debt

Carrying too much debt is devastatingly stressful for most people.  It makes it difficult to even be concerned about day to day expenses.  Once the phone calls and notices from creditors start, it just gets harder.  Sometimes the debt may be bad enough that bankruptcy seems like right answer.  However, before your debt gets to that point, there are some key warning signs to watch out for that signal you are charging in the wrong direction.       

1. It is difficult to budget and pay for normal expenses.
2. It is increasingly difficult with each passing month to pay your bills. 
3. You spend more than you earn each month. 
4. You use credit cards for regular living expenses such as utilities and groceries.
5. Your balances increase each month on your credit cards.
6. You own many credit cards with balances close to or over your credit limit.
7. You decrease your monthly payments on your credit cards.
8. You hold off one payment so you can pay another credit card.
9. You use your savings for regular expenses.
10. You are unable to put aside even a small amount each month.
11. You receive notices and/or calls from debt collectors and creditors.
12. You do not know the amount of debt you owe and fear finding out.
13. Credit cards are a necessity instead of a convenience.
14. You borrow money every month just to pay the regular monthly bills.
15. You apply to get more credit cards since you are broke with no credit left.
16. You hide from others the amount you are really spending. 
17. You were recently denied credit.
18. You are unable to afford unexpected expenses, such as car repairs.
19. You have thought about filing bankruptcy.
20. You do not visit the dentist or doctor since you are unable to afford the co-pay.

An answer of yes to any one of the above warning signs means that you are headed down the dangerous road to bad debt.  If you catch yourself early on, then hopefully you can turn it around by taking the right preventative actions.    

Start budgeting.  It’s probably a sure bet that if you are currently experiencing financial trouble, then you are not following a budget.  Now would be the perfect time to get a budget in place. 

Cut back.  Once you have an established budget, it is much easier to see exactly where you can trim unnecessary expenses and curtail splurges, such as restaurant dinners and theater movies.       

Seek help.  Look into credit counseling in order to help with eliminating your bad credit card debt.