Most of us have some kinds of debt at certain points in our lives, but it is important to know that there is the line between acceptable debts and debt troubles. Here are some warning signs that you should watch out for that indicate you are slipping into debt:
You have a depleted savings account.
Most probably, you have some type of savings account, whether it is a normal one or for your retirement, and this is an indicator of your financial health. Now, if you find yourself having depleted savings, then you might want to check on your debt situation.
You are using your overdraft.
Your bank’s overdraft protection will allow you to spend more money than you are actually having. Basically, it serves as a cushion in case you are caught short on your finances. However, going into such a protection regularly can be a sign that you are not financially sound, as every time you borrow, you are paying back not only the interest, but the overdraft charges as well.
You are using your credit cards to pay normal bills.
If you find yourself using the plastic to pay for normal expenses, such as food, clothing, utilities and rent, then you might be using too much of your disposable income to service your debt. Remember that your credit cards should be reserved for special expenditures and emergencies, which means that using them for necessities indicates that you have only a little cash left for your needs.
You are struggling to make minimum payments.
If you are making minimum payments on a consistent basis, your debt might be growing and in the brink of becoming difficult to manage.
So, do these warning signs sound familiar? If you have two or more of these, then you should immediately seek professional help. The sooner that you will take action, the easier the problems will be solved.