When it comes to accruing debt, it is really and truly tough for people to face the cold hard fact that they are in way over their head. It's much easier for you to turn things around when you are aware of what the signs are for too much debt, and if you act quickly and promptly as soon as these signs do begin to appear. Do not allow yourself to be lulled into any kind of a false sense of security just because you are paying the tiny minimum balance amounts of your credit cards every month. Just because you are not late on any of your payments, that does not mean that you are in the clear when it comes to your debt.

The first thing that you absolutely need to do is to ask yourself if any of the following warning signs apply to your personal finance situation:

1. If you have little or no savings to speak of, and if you are living from one paycheck to the next, then there is a big chance that you have too much debt.
2. If you have more than just two major credit cards, and you are making only the minimum payment amounts on them, then there is a big chance that you have too much debt.
3. If you are using increasing amounts of your total monthly income in order to pay off your debts, then there is a big chance that you have too much debt.
4. If you are shopping compulsively, buying things you do not use or do not need, then there is a big chance that you have too much debt.
5. If you are consolidating your debts into higher interest lending options, then there is a big chance that you have too much debt.
6. If you are at your credit limit or near to your credit limit on your credit cards, then there is a big chance that you have too much debt.
7. If your debts or your spending issues are creating friction between you and your friends or family members, then there is a big chance that you have too much debt.
8. If you do not know what the total is for all of your outstanding debts, then there is a big chance that you have too much debt,
9. Finally, if you rely on cash advances on your credit card accounts in order to pay your bills, then there is a big chance that you have too much debt.

There's still hope and there is help out there. The first step is admitting that you do have a problem with debt, and the next step is asking for help and getting out of your debt the right way.

Photo Credits: Daveybot

Originally posted 2009-08-11 03:18:16. Republished by Blog Post Promoter

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Categories:

Debt, Debt Snowball, Personal Finance

Tags:

cash advance, credit cards, false sense of security, family members, friction, minimum balance, minimum payment, outstanding debts, paycheck, Personal Finance, sense of security, warning signs