The Top 15 Signs that Debt Reduction Help is Needed
by Ellise Walsh
With more and more people taking on
more and more debt, it is only common sense that some of them will need help
to reduce and eliminate that debt. It can often be difficult to tell if you
need help, but there are some definite red flags and warning signs to look out
for.
Listed below are the top 15 signs that you may need help with debt reduction:
1. Your credit card balances
are on the increase but your income is steady or on its way down. It does not
take a rocket scientist to see that this situation is not sustainable. If your
debt is increasing while your income is falling, you need to seek help
immediately.
2. You can only afford to
make the minimum payment on one or more credit cards. Even a small credit card
balance can take many years to retire by making only the minimum payment.
Making the minimum payment is a good way to stay in debt forever.
3. You find yourself
juggling bills, using credit cards to pay for the groceries or the
electricity. This is always a sign of trouble.
4. Having lots of credit
cards can be a big red flag as well. The more credit cards you have, the
greater the propensity to overspend.
5. You are at or near the
credit limit on most or all of your credit cards. Running more than one card
to the max is a sign that debt reduction counseling may be in order. Not only
does hovering near the max mean looming credit problems, but it puts you in
danger of hefty over limit fees as well.
6. You consistently run a
balance on one or more credit cards. Consistently charging more than you can
pay off each month means that you are living beyond your means and need to get
a handle on your spending.
7. You are working overtime,
or taking on a second job, just to pay off your credit card bills. While
making extra money can help pay down debt, if you are working extra hours just
to stay even, you may need help controlling your debt.
8. You do not know how much
you owe, and you are scared to find out. If you are frightened of knowing how
much you owe your creditors, you may need some debt reduction help.
9. You find yourself dodging
phone calls from collection agencies and creditors. If you are already
receiving collection calls, you may already be in over your head.
10. You use your credit
cards to pay for necessities such as gas or groceries. This is a particular
problem if you are unable to pay the bill at the end of the month.
11. You use your credit
cards because you do not have the money to pay cash. Credit cards should be
used as a convenience, not in lieu of having sufficient cash on hand.
12. You find yourself
dipping into personal savings to pay credit card bills. If you are raiding
your savings account, or worse, your retirement funds, to pay for credit card
bills, debt reduction counseling is definitely in order.
13. You are hiding bills
from your spouse or lying about the cost of purchased items. Money problems
are a major source of stress in marriage and a leading cause of divorce. If
you are fighting with your spouse about money, or lying about your finances,
you may be in need of help.
14. You just can’t say no to
credit card offers. If you find yourself saying yes to every new credit card
offer, you may need to trim your credit card lifestyle.
15. You find yourself
worrying about money all the time. If you are constantly worried about your
finances, or if you worry that you would be unable to pay your bills in the
event of a job loss or other emergency, you should get your debt under control
before the unexpected strikes.
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