14 Aug Warning Signs You Might Have Too Much Debt
If your money worries are keeping you from living your best life, you are not alone. The pressures of modern living reflect in the number of overindebted households, with financial anxiety taking a toll on South African consumers. You can work a full-time job and spend within your budget, and still find yourself falling into a dangerous debt trap. But when is enough, enough? There are warning signs that you might have too much debt. Here’s what to look out for:
Living Month-to-Month
One major red flag of overindebtedness is living from one salary to the next. Do you feel broke once you have paid back your creditors? Are you struggling to get through every month and keep up with the financial obligations of your household? These heavy burden can leave you feeling isolated and stressed out. Understand the emotional toll of debt and how debt review can provide relief.
Losing Track of Debts
How long would it take you to list all your debts? If this question makes you pause, this is one of the warning signs that you might have too much debt. Juggling numerous accounts, credit cards, and loans gives you little room for balance in your budget. You can use our calculator to plan debt repayments under debt review – see how much you could save!
Relying on Credit
Debt can be sneaky – what starts as taking out a loan to afford something nice can end in a reliance on credit that happens without you noticing. Before you know it, you are relying on credit to pay for monthly expenses and afford out-of-budget costs. When you start using credit because you need to instead of because you want to, this is not a good sign.
Missing or Late Payments
Unfortunately, being overindebted is directly linked to missing or falling behind on creditor repayments. This leaves you in a vulnerable state, at the mercy of frustrated creditors who might take legal action against you. Whether you forget to maintain your payments or cannot afford them, this signals that you have too much debt. One of the benefits of debt review is that you only have to manage one single, consolidated monthly repayment, that aligns with your affordability.
Not Being Able to Save
There are many disadvantages to being overindebted. Not having enough money to save is a big problem, leaving you with nothing to fall back on if things go wrong. At True North Debt, we’ve seen clients fall deeper into debt because they do not have any savings set aside. If you cannot save because there is no room in your budget, consider debt review for government-backed debt relief.
While credit plays an important role in achieving goals, debt can quickly become unmanageable. Don’t sit back and let your financial problems get the better of you. CONTACT US today for a trusted debt review service.