Do You Have Too Much Debt?
Do you owe more than you make? Unfortunately this seems to be the case for people more and more these days. There are some things you can ask yourself to determine how close you are to being “In over your head”.
For starters, Do you know how much debt you have? If not, you need to! Make a list, as upsetting as it may be, so you know exactly who you owe and how much.
Do you have any savings? If not, you need to. Work out a new budget that includes some sort of savings for you each week, no matter how much or little the amount is.
Do you only make the minimum payment on your credit cards each month? You need to be paying more than the minimum to bring down the debt!
Are you still making more purchases on your credit cards while trying to pay it off? You need to stop. Now.
Do you have at least one credit card that is near, at, or over the credit limit? You need to pay on it every month, but do not use it at all.
Are you starting to be late in making payments on bills, credit cards, or other expenses? A sure sign that you are getting too far in debt…be careful!
Do You use cash advances from your credit cards to pay other bills? You need to figure out a way to make payments while not using cash advances. This will only increase your debt load.
Are you bouncing checks or overdrawing your bank accounts? A sure sign of troubled finances. Do not let the situation get worse. Sit down asap and go over your income and debt and see where you can make changes for the better. Maybe look into a second job, even if temporarily. Cut out all extra expenses you can, and save the money.
Have you been denied credit? Stop trying to get more credit. Denials will hurt your FICO Score, and you should be focusing on paying off the debt you have, not creating more!
Are You lying to friends or family about your spending and debt? You are getting in, or are already in, way too deep. You will feel better about yourself if you get tough and make changes and decisions that will improve your finances. If you need to change your lifestyle a bit, then so be it. When you can stop making excuses, pay bills every month, and stop lying, the increase in your self-esteem will be the greatest gift you can give yourself!
Take a hard look at your answers to the above questions. If you see financial troubles looming, then take action today!
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