Hindsight, as they say, is 20/20.
Recognizing something as being problematic is easy when it’s already happened. Of course, that’s also when it’s too late to prevent. The consequences have manifested themselves and all you can do is try to reconcile the resulting disparities.
Seeing things coming puts you in a far better position. You can take steps to eradicate the problem before it blossoms, or at least enact some mitigating measures to make recovery easier to accomplish.
With this in mind, let’s identify some of the signs you’re heading for debt problems.
Robbing Presley to Pay Parker
Borrowing money to pay your monthly bills is a sure sign things are about to go off the rails for you. Don’t get us wrong here, a balance transfer can make repaying credit card debt less costly and is a smart move to make.
However, you’ve got a foot hovering over a slippery slope when you start taking cash advances to pay your utility bill, car note, rent or mortgage payment. This is also true if you have to use a credit card to buy groceries.
Credit Card Minimum Payments Have Become the Norm
If you’re carrying credit card balances from month to month, you need to find a way to end that practice as soon as possible. Far too much of your financial wherewithal is enriching a credit card company, when it should be working to better your future.
Moreover, if the situation has devolved to a point at which you can only afford minimum payments on those accounts, you’re well along the road to financial disaster. It’s time to avail yourself of some form of a payoff plan or a credit card consolidation to get that situation back in hand.
You Have No Emergency Savings
Financial gurus everywhere recommend having an emergency fond of at least three to six months of your household expenses set aside in case your income is disrupted.
This will also come in handy if you’re suddenly faced with an unexpected expense. The Federal Reserve says 40 percent of Americans would be hard pressed to deal with a $400 emergency without resorting to credit cards.
It’s well past time to get your money in check if you’re among them.
Money is Causing Problems in Your Personal Life
Couples fighting over money lead the causes of separations and divorce. What’s more, a large number of people report lying awake at night wondering how they’re going to make ends meet. As a result, they get up in the morning tired, anxious and irritable. This can lead to confrontations in their personal and professional lives.
One of the leading characters in the film “Crazy Rich Asians”, is depicted hiding purchases from her spouse because she doesn’t want him to feel bad that her family background endowed her with more spending power than his.
Granted this is the opposite of the way these problems usually work, but it still illustrates how financial issues can introduce strife into a relationship.
You’re Having More Month than Money
Spending more than you earn will bite you in the long run. While a credit card consolidation can help you out of this situation, you have to get to the root cause of why this phenomenon is occurring. Otherwise, you’ll wind up with even more debt because you’ll keep repeating the same behavior.
Recognizing the signs you’re having money problems early can help you turn them around while your credit score and your mental health are still good. Letting these symptoms run their courses will set you up for a tough fight to get your life back on track.
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