Financial trouble can sneak up quietly when you don’t know what to look for. There are telltale signs that you can watch for to avoid losing control of your finances. Here are 5 signs that you might be in financial trouble.
5 Signs of Financial Trouble
It’s not uncommon to stumble into financial trouble at some point. Seemingly little missteps can build up and spiral out of control over time. Instead of building wealth and savings, you are stuck trying to desperately get out of debt. By keeping a watchful eye on your finances, you can avoid financial trouble more easily.
Here are 5 signs that you may be falling off track:
- Paying your bills after the payment due date. Making late payments is costly and might suggest you have too many bills to keep track of, or simply don’t have enough cash flow to cover them at the right time.
- Missing your credit card or loan payments altogether. If you are struggling to make payments of any kind, it’s a sign that you are living beyond your means. Getting out of debt on your own will be challenging or impossible if you cannot move forward with payments.
- Relying on overtime to cover your debt related expenses. Overtime is great when you are able to save the extra income or use it towards getting out of debt. It’s not a good idea to rely on inconsistent income to cover fixed expenses.
- Borrowing from family members to make your monthly debt payments. Money and family don’t typically mix well. It’s great to get help if you have a good plan to pay it back, and the money isn’t for your fixed expenses every month. However, this may only be a short term solution to a lasting financial issue.
- Skipping one credit card bill to pay another. Another warning sign of financial trouble is using one credit card to pay another. You are just robbing Peter to pay Paul. Nothing is getting fixed this way and you end up with more credit card debt.
How to Get Out of Debt and Financial Trouble
If you are struggling to pay bills or ignoring them altogether, you are in some kind of financial trouble. Here are a few options you can choose from to help you get out of debt:
- Debt Management Program
- Other Budgeting and Repayment Ideas
- Use the Debt Avalanche or Debt Snowball Method…
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.