Common signs of debt problems

In today’s busy lifestyle and fragile financial economy, it is more important now than ever in getting on top of your finances. With the everyday pressures of work, bills and family obligations, it is easy to lose sight of your finances and slowly fall into serious debt. It’s even easier to turn a blind eye and avoid financial issues until it’s too late.

In many cases financial issues can be avoided or minimised by being proactive and organised. Most people hate the term budget; however, in most cases they are extremely effective. Not only do they provide a clear snapshot of your overall finances, they help create good spending habits and allow for prioritisation of bills. Debt problems can generally be alleviated or eliminated with a simple budget.

Below is a list of questions which serve as warning signs for debt problems. If you answer “yes” to multiple questions you may want to look into some financial help. Depending on the severity or your situation, you may want to contact a financial counsellor. A good starting point would be to review your finances through budgeting and then take necessary steps.

 
Financial Questions

1. Do you spend more than you earn?
2. Do you have credit card debt?
3. Do money worries cause arguments within the family
4. You avoid taking phone calls and/or hate opening mail in fear of payment demands?
5. You have no real savings in case of an emergency?
6. Do you run out of money before your next pay?
7. Do you increase your debt to make ends meet?
8. Have you received more than one overdue payment notice?
9. You have difficulties relaxing because you are always concerned about money issues?
10. Have you had services (utilities, phone, cable, etc) shut down due to missed payments?

Debt issues can quickly get out of hand, getting on top of your finances through budgeting is a great first step in taking back financial control.