Recognizing the warning signs of financial difficulty is an important step toward recovery. But living in a denial can prevent you from dealing with the debt that needs attention right now and transform it into a bigger problem. Further signs that indicate that you are carrying unmanageable debts may include:
1. Making Minimum Payments Only
This is the most common and overlooked sign. You have credit card and loan owing but you can only manage to come up with the minimum payment. What that means is that you are stuck with the debt for the next 10-15 or even 20 years while paying thousands of dollars in interest charges.
2. Relying On Overdraft
You have an overdraft facility on your bank account and you are using it in a way that your account is almost always in negative except for the pay day. In this way you are always paying overdraft fee to the bank and there is something definitely wrong with your budget and your debts.
3. Using Payday Loans
You have resorted to pay day loans for cash. This can be the worst form of loan because of the high interest payment that it comes with. It also means that all your other debt accounts have dried up and now you are running even faster towards financial disaster.
4. Considering Taking Second Job
You are not able to cope up with your debt payments and thinking of working extra hours just for that. Not only are giving up a precious part of your personal life but also your hard earned money for unmanageable financial problems.
5. Credit Card Debt Is More Than The Limit
There comes a time when your balance is more than the credit limit. That might be due to missed payments or high interest rates. But one thing it surely indicates is that the debt has gone beyond your means to repay.
Look for these warning signs of financial trouble, and contact us to seek debt recovery help sooner rather than later. At Credit Management Services, we have legal options to help you get rid of your debts. Our qualified professionals will discuss with you all the options to find out what’s best for you.
Live a debt free life.