Image credit: Unsplash Jinyun
It’s easy to get into a debt-cycle – the more you need help, the more credit you use, and the further you fall from financial freedom. It is not necessary to avoid loans altogether, but it is necessary to make responsible decisions and self-audit your financial situation before you borrow more money. How do you know when your debt is getting out of control? Here are five telltale signs.
1. Your Credit Score Is Poor
A poor credit score can damage your reputation and hamper your ability to progress in life. If your credit score is already poor, find small ways to improve it. There are times to make use of the readily available small cash loans, especially those with low-interest rates. Just remember, it’s a temporary measure. Honoring your debt repayments might be difficult, but taking every step possible to meet the minimum repayments will save you in the future.
2. Your Debt Grows Each Month
You need to weigh up how much money is coming in each month and how much you spend. If your debt is growing, it means there’s a shortfall. Are you living beyond your means, or are your repayments so high that you are unable to cover the costs of survival? Identify the issue. If it’s the latter, seek help from an experienced debt reviewer or counselor.
3. You’re Battling With Repayments
Debt repayments can be difficult to manage, especially with interest. Sometimes, debt consolidation or debt settlements can ease the burden. When you consolidate your debt, one organization takes over all your lines of credit, and you make repayments to just that one entity. This gives you one interest rate to deal with and one point of contact. Sometimes, you are also able to negotiate a fairer monthly repayment amount, allowing you to cover the costs of living while meeting your repayment agreements.
4. You Dread Debt Collectors’ Calls
We all hate getting calls from accounting departments, and even worse, debt collectors. When you know you are behind on payments and you don’t have the money you’re supposed to have paid, it can give you crippling anxiety. The worst thing you can do is ignore the calls. If you reach this point, your debt is out of control, and it’s time to get help. There are ways of resolving the dreaded debt collector calls that will allow you to curb the fear and panic. Sometimes, it is a simple matter of reaching out for help.
5. Your Finances Are Causing Sleep Loss
Are you being swamped by sleepless nights spent worrying about your finances? If so, your debt is probably out of control. Instead of digging yourself a deeper pit by borrowing more money, meet with a professional who can help you find ways to settle what you owe and still survive. When you’re in the depths of a debt hole, it often feels far worse than it is. When you have the situation assessed by an outsider, with no emotional investment in the situation, you can find a logical way to reach a better agreement with those waiting for payments from you.
Finding your way out of debt can be difficult. It is important to remember that you don’t have to do it alone – there are ways to simplify this. Drowning under the weight of your repayments can feel all-consuming. Remember, this is a common problem, and you’re not alone. There’s no shame in it. Become the master of your own finances by resolving your debt and prospering.
Thank you,
Glenda, Charlie and David Cates
