Early Warning Signs of Debt

 

If any of the following seem familiar then it's worth taking five minutes out and just think about your finances for a moment.

 

Do you....

• have to stretch your money out to last the month
• have no money left at all a week before payday
• fail to put any money away into savings
• feel down if you have little spare cash

 

Are you....

• dipping into your savings for things like food and petrol
• tempted by special offers for store and credit cards, trying to justify why you should have one

 

Recommendation: By taking minor steps now, you can avoid things getting worse.

 

 

Warning Signs you are in debt - take action now

 

Have you .....

• missed a loan or mortgage payment even by a few days
• gone over your overdraft limit
• borrowed money from family every month to help with household expenses
• converted your mortgage to interest only to keep out of debt
• not had a holiday for a year and can't afford one

 

You don't...

• clear your credit card off each month, just the minimum amount
• have any savings

 

Recommendation: Taking remedial action now or seeking professional advice can reverse what is a downward spiral.

 

Find a trained money counsellor

 

 

Danger Signs of Debt Problems - seek immediate advice if any of the following are true

 

Have you ....

• missed payments on loans or credit cards and have them calling you
• received 'red letter' warnings
• fallen behind on mortgage payments
• paid for weekly shopping on credit card but only pay the minimum amount each month
• a court summons for non payment of debt
• got the threat of bankruptcy over you

 

Are your....

• total debts, excluding mortgage, exceeding your annual income

 

Recommendation: You must contact a professional money counsellor for advice. The advice is free and they are not there to judge or comment. They help hundreds of people a day.

 

Find a professional debt counsellor

 

Additional Reading:

How to avoid debt