One of the signs that you may have too much debt is that you do not know how much you owe. This is partly because you are so indebted that you deliberately ignore your debts so you do not feel uneasy. It is time for you to stop ignoring them and take the appropriate steps to repay your creditors. First, determine how much you owe.
You pay your bills late because you do not have money
If you pay your bills late because you do not have the funds to pay them, it may indicate that you have too much debt. This is not only bad for your credit rating but makes your financial situation worse because you will probably have to pay higher interest charges. To stop paying late bills, you must track all your monthly expenses and see what you can reduce.
You are not answering the phone because it could be a collection agency
If you are afraid to answer your phone because you are afraid that it will be collection agents, it is an obvious sign that you have too much debt. One sure way to get creditors to stop calling you is to not give them a reason to call you in the first place. If you feel suffocated by your debts, immediately consult an authorized insolvency trustee.
You borrowed money to pay your bills
Paying your bills with other loans, whether they come from family, cash advances, friends or credit cards, is a sign that you have too much debt. Not only will you be so indebted that you will miss places to borrow money, but you will create an uncomfortable situation between you and your loved ones. Try to create a budget as quickly as possible and see if you can find a way to increase your income and reduce your expenses. In this way, you will not have to borrow money to repay your debts.
You have spent all your savings
Although not having savings does not necessarily mean you are in debt, spending all the money you have worked hard to save is a sign that you were. As you begin to spend your savings, think carefully and try to find a solution to avoid this problem.
You can not pay your living expenses without a credit card or loan
If you have to borrow money to pay for your living expenses, that’s a bad sign. This means that you do not have enough money to maintain your lifestyle and that you may not be managing your money properly. Try to budget or increase your income to support yourself without having to borrow money.
Your finances affect your daily life
Financial difficulties can really affect a person’s personal life. So if you find that you can not sleep at night, hide your expenses from your loved ones, or use drugs and alcohol to feel less anxious, you may need assistance from a licensed insolvency trustee.
If you feel overwhelmed by the stress of your financial situation, immediately seek the assistance of a licensed insolvency trustee. Indeed, dealing with your debts as soon as possible will eliminate this stress and allow you to live comfortably without fear that the next phone call will come from a collection agency.