Guest Post By Audric Stevens
If you’re to go by what financial experts report, then you’ll realize that an average household carries at least 10,000 dollars in debt. Apart from this debt, then again people tend to take out car loans and other such stuff which simply adds on to the financial burden altogether. This is why it’s of utmost importance to identify and acknowledge any problem you might have. Actually unless you acknowledge the problem, you won’t really know how to address it.
The tell-tale signs of debt
Here are a few tell-tale signs indicating the fact that you’re going down in debt. Understand that this is the right time to act upon it for the sooner you do so, the better it gets for you. There’s no point panicking and allowing the situation to go from bad to worse.
1. You’re only able to afford minimum payments: If you see that you’re just about to afford the minimum payments on your credit cards, then it’s time to sit up and take notice. The reason behind this situation is obviously the fact that you’re carrying too much debt and you’ve got to take steps to get rid of it and that too as soon as possible.
2. You don’t have anything in savings: Generally it’s believed that a comfortable nest egg is a direct indicator of rather good personal finance management. This is essentially because it can then provide you with income in case you’re to lose your job or happen to be faced with other emergencies. However, if you have to spend all your money in debt payments, then you’d obviously end up depleting your savings account. Now, lack of a savings account shows you’ve got a financial problem and you better take care of it.
3. You’re suffering from physical ailments: It’s a known fact that too much debt generally results in dire physical exhaustion or fatigue. If you’re suffering from too much physical problem and that too on a regular basis, then it has to be a direct impact of the financial turmoil you must be facing. The stress associated with not being able to make your payments can effectively result in increasing levels of anxiety, loss of appetite, disrupted sleep routine, etc.
4. You’re unable to get new credit: Understand that debt owed has a direct effect on your credit score. Hence, the more debt you’d carry, the worse would be your credit score. You might soon find it difficult to get credit approvals thanks to the debt amount you might be carrying. If you see your creditors and lenders sending rejection letters after being turned down for credit applications, then you don’t really need to be told why it’s happening.
The 4 signs discussed above happen to be the most evident and telling signs of the fact that you’re in debt and you need to tighten your financial reins before all hell breaks loose. There are, of course, many other signs that should tell you the same provided you choose to identify them.
Audric Stevens is a financial expert and a contemporary writer. He is involved in various online activities through which he imparts financial lessons to people with diverse needs. In addition to that, he is closely working with the ‘Debtconsolidationcare community’ at the moment that has several interesting and prudent financial tips for people to use. If you like this article please follow us here.