I have had many 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 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.
- Suppose 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),. If you are thinking of consolidation loans, you are in trouble and should go get help.
- A financial plan is needed, or at least a list of general expenses. 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 bigger than $100 should be on your calendar with warnings on when to pay it.
- It would help if you had a new vehicle fool 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 pay (and you are paying every two weeks).
- If the phrase, “payday 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.
No One Chooses to Get Out of Control
I realize very few folks make the conscious decision to let their debt get out of control. It is scary to think just how simple it is to have things get out of control regarding your finances. Diligence is the watchword for your money.