Warning signs of too much debt

Do I Have a Debt Problem?

Financial problems tend to sneak up on you. Unchecked excessive spending and inadequate planning and saving are the most common causes of financial crises. The following signs will help you identify an existing debt problem. If any of the warning signs listed below apply to you, immediately take steps to modify your behavior and sort out the problems.

• You use credit to buy things you used to pay for with cash.
• You make only monthly minimum payments or miss payments on charge accounts.
• You’ve maxed out your credit limit on most of your cards.
• You consistently charge more each month than you make in payments.
• You use cash advances on one credit card to pay off another.
• You hope that checks you've written don’t bounce before payday.
• You borrow from friends and relatives to cover basic expenses.
• You are dipping into savings or your IRA to pay your monthly bills.
• Creditors are calling you about overdue bills.
• You don't know how much you owe and are afraid to find out.

If you see some of these warning signs, you need to evaluate your financial circumstances, especially if it’s not a temporary situation or if you are not unemployed. If you see that some of these behaviors are becoming habits, be honest with yourself and admit you have a problem; then you can move toward solving your dilemma.