Warning Signs of Debt

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You don’t have to run a poll asking all your friends and family to know what debt truly means. Regardless of your financial situation and your mindset towards spending or saving, debt remains to be the one thing we desperately want no part of, and yet surprisingly it is the one that that clings to us – or us to it – as if it were an organic part of our lives. Debt, in excess, is something that is truly worrisome as it can severely limit your capability to take control of your financial future so learning to be familiar with the warning signs of way too much debt can help you be more informed about its hold in your life. 

It doesn’t take a personal finance expert to spot these warning signs. Take the time to assess your current financial situation and watch out for these sure signs of debt that can drag you under if left unresolved. 

  • You’re using one credit card to pay off debt from another credit card. Credit cards are valuable assets that you can take advantage of to secure deals, discounts, and promotions but when you regularly use it to pay for debt from another card, then you are in serious trouble. The day you find yourself in a vicious cycle of credit card debt roulette is the day you need to accept that you are in a serious debt problem and you need help to get out of it.

  • You get charged with late payment fees. Paying your debts in-time helps you avoid late fees which are another form of extra expense. If you’ve been hit by late payment fees left and right, it only means that you have been missing your payment deadlines presumably because you are having a hard time settling your debts. This can be indicative of a bigger problem such as your inability to balance your earnings and savings so as to make sure all debts are duly covered in time.

  • You’re salary barely makes it through a day or two before you are forced to rely on credit to help you make it through another payday cycle. This situation indicates that you are spending your salary in advance instead of using it to actively take care of your needs within the period. Falling into this cycle implies a serious financial problem that you need to immediately deal with before it balloons into debt that you can no longer settle. 

Be wary of the warning signs of debt. Pay attention to your financial situation and constantly assess your standing so you can take the necessary steps, or even ask for help, if you have determined that your financial position is already leading you to debt. Everyone has the right and responsibility to actively seek financial independence and this effort begins with being aware of the warning signs of debt. You would certainly do well to heed it.