Common Warning Signs that You Have Too Much Debt.

By: Kausik Dutta

For most people, debt is a normal part of life. Most people and families always carry a certain amount of debt, which we often see as necessary to provide the kind of life that we all expect. And living with some debt can be manageable – as long as we can stay on top of it. But when debt spirals out of control, we realize that too much debt can be devastating to our finances, as well as our personal life.

At this point, it is necessary to re-evaluate budgets and spending and find the best way to get out of debt and reclaim control of your financial future. Here are some ways to determine if you are in too much debt:

Credit Card Dependency – Although credit cards are often beneficial, overuse of them can be detrimental to your finances. If you find yourself using credit cards to cover basic expenses such as gas and groceries because you don’t have the money in your budget to pay them, this may be a warning sign that you are in too much debt. Using credit cards for everyday purchases can cost you several times the original amount in interest and late fees.

No Savings – A part of every health budget should include putting away money from each paycheck into a savings account, retirement fund or other long-term investment. If you don’t have enough money to put into savings, you need to re-evaluate your budget. Not having money for savings puts you at risk for further debt should unexpected expenses arise.

Bounced Checks – Bounced checks are often an indicator that you have too much debt. Besides the inconvenience, bounced checks often result in fees which further your debt. It is also an indicator that you may not know how much money you have, which is another sign of significant debt.

Denied Credit – If you can’t get approved for loans, credit cards or other credit, your debt may be to blame. It is difficult to get a loan or other credit when you cannot pay off the bills that you already have. This negatively affects your credit, which will only continue to hurt your finances.

Trouble with monthly bills – One of the biggest problems with too much debt is the inability to pay monthly bills such as rent or mortgage payments, utilities, insurance, etc. If you have so much debt that you are hindered from these basic monthly payments you will only continue to get behind and increase your debt.

These are just a few of the common indicators of too much debt. If you find yourself in these situations, it may be time to get out of debt as soon as possible. The first step is to make the commitment to get out of debt. It will take hard work and some time, but with the right attitude, you can get out of debt faster than you think.

Re-evaluating your budget, examining your expenses and cutting back where you can are all good ways to get started. However, if you decide that you can’t do it on your own there are a lot of programs available to help you reach your goals and find the best way to get out of debt.
Do your research and find a program that is realistic, legitimate, and fits into your financial outlook. Once you do, all you have to do is stick to it and you’ll be on your way to financial freedom.

Article Source: http://www.articlesnatch.com

About the Author:K.S. Louman writes consumer information articles on personal finances and debt management. For more information on how to get out of debt fast, please visit www.debt-free-in-three.com