Drowning in debt can be a stressful experience, especially when the financial hardship you are experiencing is through no fault of your own. It can seem like your options are limited and that time is running out. Fortunately, there are tools available to help you get out of debt and you don’t always need the help of bankruptcy. However, in order to get help you need to be able to recognize when your situation has reached the point of needing help.
There are several recognizable signs of someone whose debt burden has taken over their life. The best way to prevent your debts from getting out of control is being able to recognize the early warning signs.
1. Hitting the limit — maxing out a credit card doesn’t take long and can easily happen overnight. One or more of your credit cards is nearing its maximum spending limit should be a cause for concern.
2. Transferring balances — it isn’t uncommon for people to transfer the balance from several cards over to one, low interest rate card. This is a bad money management habit and should be broken quickly as it can easily cause you to accumulate more debt without even knowing it.
3. Missing payments — missing payments is a big indicator something is unbalanced in your financial situation. It is best to take action before you miss a payment, but if you already have missed a payment it is not too late to get help.
If you recognize any of these three signs, take action now to prevent your financial situation from backing you into a corner. Many credit counseling agencies can offer a variety of resources and tools to help teach you how to reduce your debts, manage your money and use credit wisely.