4 Signs your debt is out of control


Are you burdened with debt? If so, do you worry about how you’re going to pay the interests payments, let alone reduce the debt? Would you say your debt is out of control? Then again, perhaps you’re not sure whether it’s out of control or not?

Certainly debt is becoming an epidemic leaving those in its wake feeling desperate. It is a fact that debt enslaves you and the burden of debt will keep you awake at night. And of course debt can be extremely stressful, particularly when it feels like everything is out of control.

There are few things more terrifying than waking up each day knowing you owe thousands of dollars, pounds, dinars or yen in debt. Whether it’s credit card debt, car payments, student loans or any of the various forms of unsecured debt if will take you a lifetime to pay off and that’s a terrible burden to bear.

It you have any concerns about the levels of debt you bear, you’re not alone dear reader. This is a problem which affects many people from single moms struggling to make ends meet to CEOs of major corporations. Debt affects people from all walks of life. And it’s easy to get into a situation where suddenly you realize that you’re in over your head.

Now you may be wondering if there are signs that will suggest whether you’re heading for disaster?

If you are to enjoy peace of mind and a lifestyle lived within your means, then you must first acknowledge that you have a problem. Which in turn means you must resolve to dig your way out of the hole you’re in before it’s too late.

So what are the signs you must consider? Here are four:-

1. Living Payday to Payday:

Do you find yourself having no money immediately after you’ve been paid?

Perhaps this is an experience you’ve had recently? Your money comes in and your money goes straight out again. The result is you left wondering where it all went and why.

A recent statistic suggested that around 76% of Americans live this way. Perhaps that’s an exaggerated figure but probably not by much and it’s the same in many developed economies, people living beyond their means.

Now you work hard for your money don’t you? In that case, doesn’t it make sense to take control back and start managing your money wisely? Perhaps having a budget and living within your means?

2. Creditors are calling:

Ever had that experience where you owe people money and they’re knocking on your door demanding repayment? It’s not a nice experience that’s for sure. Collection calls can ruin your day and your reputation too.

Creditors call at the oddest hours because they want to ensure they catch you at home. They can often be aggressive and nasty too. This is stress you really don’t need.

If you get to the point where your bill has been sent to a debt collection agency because you can’t or won’t even make the minimum payment then you have a serious problem. This is when you know your life is getting into a real mess. And you really don’t need this much stress do you?

When creditors are calling this is a sign that your debt needs reducing and your household needs a budget.

It means you’re in a financial hole and so when you’re in a hole your first action must be to stop digging.

3. Impulse Spending:

Retailers love impulse spending and they have lots of tricks to bounce you into buying things on impulse. They place some item they know you can’t resist in a place you just can’t miss. You see it and you buy it. Well it’s hard to say No to your inner child, isn’t it? We all do it, occasionally.

The problem is if you buy stuff you don’t really need on impulse that’s money that could have been used to reduce your debt.

Impulse buys can lead to a mountain of debt if you’re not careful. The problem is you usually buy with a credit card which comes with very high interest rates. When you get the bill for your credit card if all you do is make minimum payment then the magic of compounding will very quickly turn a small debt into a large one.

If you can have your money budgeted out each month this can reduce the temptation for impulse buys because you have already told your money where it is going ahead of time.

It’s a good idea to know what you’re money is committed to and it’s an even better idea to say No to your inner child. Well it is if you what to avoid the stress that accompanies a debt burden.

4. Money Fights:

Possibly the greatest source of conflict in marriage is money, or lack of it.

Money fights tend to happen when you and your significant other are not on the same page regarding the flow of money in and out of the household.

Naturally this is a source of stress and frustration in the marriage and is one of the biggest causes of divorce today.

You both need to be on the same page where money is concerned. You both need to discuss money and make sure you agree a spending plan that will work for both of you, whilst minimizing the risk of incurring unnecessary debt. You should both know what to expect where money is concerned.

Conclusion:

If any of these signs sound familiar to you then it’s probably time to start thinking about how you can cut down on your spending and start getting rid of whatever debt burden you may have.

Dumping debt is not as hard as it may sound. It’s not easy of course but with careful planning and discipline it’s not difficult either.

A written budget is a good way to start pulling yourself up from the depths of debt despair. And you needn’t worry because there are plenty of resources out there to help you get started.

The hardest part is the change of mindset you’ll need. See yourself not as a spendthrift but as someone who chooses to manage and spend money wisely. Someone who lives according to a proper spending plan

If you stick to your spending plan you’ll be on the first leg of the journey towards a lifetime of financial freedom.

Financial freedom means no stress where money is concerned and not having to worry about how you’ll settle the next bill.

Financial freedom is peace of mind and that is wonderful thing. Even if you’re not there yet I’m sure you’ll recognize it as the ideal place to be.

Of course this is one opinion. What do you think? Do you have any suggestions of other signs people might consider? Do let us know. You could be of great service to other readers.

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© Roy J Sutton and Mann Island Media Limited 2017. All Rights Reserved.

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