Are you in debt trouble? Read each item to learn the warning signs.
- You’re always late in paying your bills.
- It takes you 60 or even 90 days to cover bills you once could pay monthly.
- You juggle payments to keep creditors satisfied.
Your checking account
- Your checking account is frequently overdrawn.
- You can make only minimum payments on your credit cards.
- You race to deposit your paycheck because you’ve already written checks that require the money in your paycheck.
- A small reduction in your income or an unusual expense would make you unable to pay all of your monthly bills.
Your credit cards
- Your credit accounts are usually at their maximum limits.
- You apply for more credit cards because you have reached the limit on the ones you have.
- You are spending more than 20% of your take-home pay on credit payments (not counting your rent or mortgage).
- Your loan or credit card balances stay the same or go up each month.
- You’re still paying off purchases you made a year ago.
- You put off medical and dental visits because you cannot pay the bill.
- You don’t have a savings account, or you have stopped making deposits to it.
- You are always worried about your debts.
- You argue with your spouse or partner over bills.
- You sometimes wonder why you made certain purchases.
- You feel free to spend more after clearing up a debt.
Your living expenses
- You use savings or credit cards to cover everyday living expenses, such as groceries.
- You ignore the telephone or mail to avoid dealing with creditors.