The Warning Signs of Debt
- First sign is being in denial about how much you owe or any comprehension of your finances. Combat this by going through them yourself, ask a friend or relative, an accountant or a free money advisor agent.
- Refinancing a loan to reduce your monthly payment.
- You have no savings so you’re living day-to-day. You can barely afford minimum payments that are due monthly. To deal with this you can you’re your bank or credit card company and see if you can reach a more manageable agreement. If you have a good payment history it is likely you will be listened to. However if you act too late and you’re slightly behind you could transfer existing balances to a card that offers low introductory rates of interest. And of course you need to stop making purchases on a card which you are trying to pay off. Another major sign of debt is that if you have a credit card that is nearly/at/over its credit limit.
- Financing your vehicle for six or more years.
- You have been denied credit. If your debt has already reached a level where you are rejected from a credit check approval this is a major warning sign. The letter or email you may receive clarifying the reasons why you have been rejected from your credit applications may include high balance, too much credit, no credit history or the main one, a low credit score.
- Consolidating your loans but not closing the accounts.
- Your personal life is being affected. You are feeling the mental, physical and emotional strains of being in debt. You may lie to friend, family and yourself about your situation. There are major mental health implications of being in too much debt too. At this stage it’s very important to talk to someone, no matter who they are. If your sleep routine, happiness, appetite, and anxiety levels have been affected you’re more than likely carrying too much debt.
© Copyright 2016. Anthony Joyce is authorised by the Insolvency Service of Ireland to carry on practice as a personal insolvency practitioner.