Do you find it more and more difficult to make ends meet? If this has been going on for a while now, your financial future could be looking bleak. So, before you completely drown in debt, check for signs that you’re courting money woes.
Are you struggling to pay your debts?
If the answer is yes, then you’re definitely in trouble. Before you completely fall out of your creditor’s good graces, take a step back and find out why making repayments has become harder. Then, find ways to increase cash, such as creating and sticking to your budget, and searching for an additional income stream.
Are you borrowing money to pay off existing loans?
Borrowing money to repay loans is the ultimate sign that you’re in deep debt problems. It’s a roller coaster situation, after all. You may be able to pay off one loan, but you’re still facing a new one. So, before you seek financing options, evaluate your financial situation first. Do you really need another loan on top of the others?
Do you have savings or emergency fund?
Having money for the rainy days is crucial, more so for unexpected events. This why you should start one right away if you still don’t have any. If you don’t have extra for savings, find ways to stretch your income.
Do lenders turn you away?
It is one thing to be granted a loan with high interest rate because of a low credit score; it’s another if lenders deny you credit—completely. The situation clearly shows that you’re in over your head, and unless you turn things around, you’re financial problems will be there to stay. Having debts can become a messy affair. So, before you end up drowning in them, evaluate your finances and find appropriate solutions for existing problems. Learn from other people’s mistakes, especially where credit cards are concerned.