How do you recognize you're in debt problem? There are many factors to point out possible debt worries. It's quite tough, though very important to know if you're adding strain on your finances. Remember, trouble always arise after sending a red signal. There are many symptoms that can help you to understand if your debts showing red flag. So, this is a must read article in order to compare your situation. If you're going through any of the below situation then its the right time to work on it unless it can arise a serious financial problem shortly. Take a look:
1. You've been denied by the lender
If your loan application get denied several times by the lender then you can expect that you're crossing the maximum level of debt that you
can manage. This is one of the most prime sigh that you've huge amount of debt. Remember, the more you've debt the far you're from new credit.
2. You're always late with monthly payments
If you start missing your monthly payments or hardly remember about the payment date that means you're owing too much. You'll be in trouble when paying debt with more debts . Remember, it's a beginning of problem when you're using one credit card to pay the bill of another credit card.
3. You've ZERO savings in your account
Have you ever noticed that every month your all money is going to meet the basic expenditure and paying the bills? If yes, then your monthly income is blowing behind your debts. Which means you're not a creditworthy borrower.You may face problem while applying for another loan. Because your lender will check the DTI and may deny as you can't manage new debts. So, take an inventory of your savings account to know if you've too much debt.
4. You're suffering from panic attack
Unmanageable debts may cause of mental stress, panic even bad health. The constant calls from the creditor can hamper your regular routine (sleep, eat, work, relax). Thus, your health may affect by over thinking about the debts and collection calls.
5. You're thinking more about debts instead of yourself
If you ever think that you're a loser as your debt doesn't allow you to think about yourself. If your outstanding balances is more than your average income then you may face lot of trouble in personal life.
6. You're creating a strict regimen to kill your debts
One fine morning you've decided to follow an aggressive debt repayment plan to pay off all your debts. This is one of most major sign, you've more debts that you can manage.
Where you are standing?
It can be quite tough to understand whether or not you're in debt problem. The best option is self analysis. Thus you can get most reliable and honest answer. Try to give the answer of below questions in order to know your debt situation.
- Are you a slave of credit card to meet every day expenses (groceries, medical cost etc)?
- Will you ever blame yourself about any particular purchase ?
- Will your spouse have issues regarding bills ? (phone, utility, etc)?
- Have you started savings for retirement?
- Have you reached the limit of your credit cards?
- Are you making only minimum monthly payments?
- Do you have idea about your total debt?
- Are you happy with your family life?
- Does the anxiety hamper your profession?
- Does the pressure forced you to getting drunk?
It's easy to deny problem but hard to accept the reality. Ignoring the problem can't be a solution. So, it's advisable to take positive changes as early as you point out your debt problem. So, don't try to hide or prolong the problem. There are many solution of a debt problem. You can discuss the problem with the creditor, you can go for settlement company to get a solution, bankruptcy. Moreover, you can take positive changes such as part time job to earn more money, budgeting, frugal living proper savings plan. so on. So, where there's a will, there is a way.