The Signs of Financial Distress
Warning Signs You May Be In Trouble
Financial trouble can sneak up on you. It doesn’t always happen over night and the use of credit can mask the danger from you until it is too late. You may feel that you struggle to keep track of your finances but that if you put your mind to it you would definitely be able to get a handle on the situation. Perhaps you are not as convinced. Maybe you feel that you could be in way over your head and think you probably need help.
How do you know if you’re heading for credit trouble?
Here are some warning signs that Capitec Bank say you need to watch out for.
- You depend on inconsistent, unpredictable income such as overtime or an extra part-time job to pay your bills, or you are always looking for extra cash by selling goods to pay your debts
- Your expenses exceed your income and you run out of money before the end of the month
- You borrow money from family members and friends to get through the month or pay your bills
- You are repeatedly at or near the maximum credit limits on your credit or store cards, and other credit
- You often struggle to make the minimum payments on any of your credit agreements
- You regularly miss payments and keep falling further behind every month
A sure sign that things are out of control is when you take more credit to pay off other credit and to make ends meet. If this is your situation or if any of the above points rings an alarm then it is probably past time to get help. If you get a cough, you know it is time to visit the doctor. If you see any of these signs it may be time to head over to your friendly Debt Counsellor or talk to your credit providers.
More advice on this topic in this month’s Debtfree DIG Magazine.
Out Soon