I have had a lot of folks comment to me about how “… I didn’t know I was in trouble financially until I was in the middle of it…”, which is (unfortunately) true for many folks. In trying to help folks understand some of the warning signs that their debt load is starting to get out of control I will give you some personal examples of when you should really start doing something (i.e. make a plan, or talk to someone) about your debt load.
- If you have yelled at your spouse because they bought the “expensive” toilet paper. If you are that close to the edge that whether you get “ass ripping” or “soft on my bum” toilet paper matters, you are in trouble.
- You start devising plans to transfer monthly credit balances from one credit card to another one with a lower rate of interest. You shouldn’t be carrying debt on your credit card (even if it has a low-interest rate), and if you are thinking of consolidation loans, you are in trouble and should go get help.
- You try to put together a financial plan, or at least a list of known expenses, and you can’t remember all the places where you owe money, this is a big problem. More than once I have heard an associate tell me, “… I forgot that I had to pay the property tax this month..”. Really? Any bill that is bigger than $100 should be on your calendar with warnings on when to pay it.
- Your need to have a new vehicle fools you into allowing your car sales rep to “blend and extend” or “fold in” your previous car lease into your new one, because it’s only $50 more a pay (and you are paying every two weeks).
- If the phrase, “pay day loans aren’t that bad” is ever used by you and not in a sarcastic way, you are really up feces creek without a canoe or a paddle.