Credit Card Debt

10 Signs of Financial Trouble

financial trouble
Pin to Pinterest Share on LinkedIn

One of the biggest hurdles people face before deciding to do something about their debts is having to acknowledge that there is even a problem. Denial is a strong force, one that can hinder you from making improvements to your financial situation

If you need validation that your finances could be in better shape, here are 10 warning signs that you may be in trouble.

1. You are only paying the minimum amount, or less

Do you realize how much money you’re flushing down the toilet when you only make minimum payments? You’ll probably end up paying more in fees and interest than the item originally cost. If you can afford to pay more, do it. Otherwise look at other debt relief options .

2. You shuffle debt around from credit cards to credit cards

You’re not really paying off anything when you use other credit cards to make the payments. Debt shuffling does not equal debt repayment.

3. You are near the limit on each of your credit cards

When you have high credit card balances relative to your credit limit, it decreases your purchasing power and lowers your credit score

4. You charge more each month than you make in payments

This is something that needs to be nipped in the bud. Otherwise, the debt cycle will never be broken. It’s important to create a budget and aim to make payments on time and in full.

5. You’ve received phone calls or letters about delinquent bills

Are you constantly worried about getting calls from your creditors? Stop living in fear! It’s time to deal with the situation by resolving your debts and cleaning up financial house.

Find out how to cope with debt collection agencies here.

6. You use credit cards because you don’t have money

We understand that times can be tough, but when you do this, you do greater damage to your finances in the long run.

7. You are dipping into your savings to pay your monthly bills

Any reputable financial advisor will tell you how important it is to have an emergency fund. If you are having trouble making payments and dipping into your savings, a p debt relief company may be able to help get you back on track.

8. You are embarrassed about your debt and let people know about it

Struggling with debt isn’t uncommon, but many debtors are ashamed of their situations. They want to appear fine to the outside world, but debt can be a serious problem. The earlier it is addressed, the easier it is to recover from.

9. You sign up for every credit card that sends you an offer

Every time you sign up for a new card, your credit gets pulled. If you are maxed out on your current cards, don’t rush to get a new one! Instead, spend some time to get your current accounts healthy.

10. You worry constantly about your next paycheck or income source

Are you always impatient for payday? It’s so stressful to live paycheck to paycheck, and it shouldn’t have to be that way. Perhaps it’s time to review your spending and savings habits, and develop a plan to make better financial choices.

If one or more of these statements relate to you, then , you may be in financial trouble and could benefit from a free debt evaluation. Let the Certified Debt Consultants at Freedom Debt Relief go over your situation with you and help you discover your best options. Give us a call today at 800-910-0065 .

Need debt help?

Download our free debt management guide to learn how to deal with your debt.

Tammi Huang is a Marketing Manager at Freedom Financial Network. Her goal is to help people adopt better money habits and improve their financial health. She wholeheartedly believes that spending less doesn’t mean living less. When she’s not writing, Tammi fills her free time working on home design projects, trying new restaurants, and exploring dog-friendly spots with her rescue pup.