So many of us get busy each day and never think twice about the current debt load we are carrying. No one wants to think about how far behind they are or how long it is going to take to get out of debt. However, you could be wasting valuable time or money by putting your debts out of mind. Don’t waste another minute turning away from your debts. Learn to recognize the signs of an overburdened debt loan and when it the right time to seek help.
In Plain Sight
There are a few telltale signs of an impending debt crisis. Although you may not have hit it yet, chances are continuing on the same path will lead you there. The first sign of a path to financial trouble is using credit when you can’t afford to purchase the item in cash. The exception being a large, one-time purchase that you plan to repay promptly. Anytime you find yourself using credit cards to buy gas, food or clothing because you don’t have the cash, you should take a closer look at what is going on with your budget.
One you begin using credit unwisely or carelessly, balances can easily skyrocket. If your debt balance exceeds 40 percent of your total spending limit, you may be in trouble. Carrying one or more cards with greater than 40 percent debt-to-limit ratios is a signal that you are overspending or under earning. The next step from here is an unnervingly smooth transition into balance transferring. While attempting to consolidate many balances onto one card for purposes of paying off the debt is a good one-time strategy, many people abuse this step by continuing to charge on their old credit cards.
Calling Out For Help
If your financial situation resembles any of the above, don’t worry. There is still time to get help. Credit card negotiations is a great way to obtain a repayment plan that suits your budget and can even save you money in interest payments over time. However, getting help requires effort and focus to not fall back into old habits.