Growing up, one thing we’ve all come to realize is that life is expensive. Sometimes it may feel that as our age goes up number by number, so do our bills and various monthly payments.
As the prices for basic necessities continue to hike up, you in turn have lesser control over your budget and are made to rely on credit cards to cover up the excess spending. But before you know it, you’re one month behind on your payment, then two, then three…
You’re in over your head and have accumulated a mountain of debt. Managing debt can be a vicious cycle that just goes on and on until you have no way out.
Here are a few surefire signs that indicate you need debt management.
You’re Living Paycheck to Paycheck
Does your bank balance tilt dangerously to alarmingly low levels during the end of the month? Do you wait for the new month to start ASAP so that you can cover your expenses? Living paycheck to paycheck means you have no safety net set aside for the future and emergencies. What’s more, you’re barely covering your expense in the present. If that’s so, you know you have a problem.
You’re Way behind on Your Credit Card Payments
Over the years, you might have racked up a considerable amount of credit card debt. By now, you must be regretting getting a credit card in the first place.
However, owning a credit card isn’t the main issue, not staying ahead of your monthly payments is. If you’re making late credit card payments, it signals financial mismanagement and reflects poorly on your credit scores.
You’re Constantly Hounded by Debt Collectors
If you’ve seen Confessions of a Shopaholic, you know credit debt collectors can be quite persistent. You’ll have a hard time doing anything when you’re too afraid to pick up the phone because your credit company is calling you constantly. What’s more, if you’re not available over the phone, some debt collectors may even visit your workplace to reach you!
You Don’t Know How Much You Owe
A major red flag? You aren’t aware of how much debt you’re in. The amount of money could be so overwhelming that you’ve started avoiding keeping up with the numbers. Or maybe your finances are so mismanaged that it gets impossible for you to keep track of everything.
If you’re experiencing any of these, know that it’s time to get help. It’s advisable to seek debt counselling services to help you with financial debt management. Look for reliable companies such as Credit Matters that can help you get back on the right track.