Make Paying Your Obligations a Priority
You can’t talk to anyone who is absolutely debt-free. However, that being said – acquiring debt also gives you the opportunity to pay what you owe in a responsible and timely manner. To get into the practice of paying our bills on this way enables you to build a financially strong portfolio or sold credit history. As a result, you can obtain better loan terms over time, especially for big ticket items, such as autos and real estate.
Manageable Debt Can Quickly Turn into Problem Debt
Still, manageable debt can also quickly turn into problem debt if you are not careful about budgeting your money. People living in North America and Canada have definitely felt the impact of dwindling equity and maxed out credit. If you are not scrupulous about your record-keeping then, you can find yourself quickly in over your head.
Is Paying Your Obligations Becoming a Burden?
Therefore, it is essential to stay cognizant of financial red flags when you are viewing your own monetary picture and everyday living situation. Be aware of these warning signs before you start to feel impossibly overwhelmed. For example, does any of the following statements apply to you?
–Most of you income is used to pay off credit cards or bills – all of which do not include your mortgage.
–You are not sure about the exact amount of money you owe.
–You have a number of revolving charge accounts, most of which you pay the minimum monthly amount.
–Most of your charge cards or retail cards have hit their limits.
–You frequently overdraw on your checking account.
–You have a hard time being accepted for loans or credit card accounts.
–You still use the credit cards you are still trying to pay down.
–You use cash advances from credit cards in order to pay bills
–You use your credit cards to purchase items (such as gas or food) that you would normally pay with cash.
–You are in a continual turmoil about your budget – you suffer from insomnia, feel overly stressed, have lost your appetite, or are overeating to compensate.
–Creditors and collectors keep calling you or contacting you by email or snail mail.
Big Clue-ins That You are Over Your Head in Debt
Taking on a Whole New Perspective
If you can say some of the above statements apply to you, then you have to look at money management from a whole new point of view. The management of credit is an enormous responsibility, especially in today’s economy. However, when you learn to organize your budget and manage your credit intelligently, you can create the armor needed to resist the temptation to spend.
Develop a Budget Plan
Don’t ignore the warning signs associated with too much debt. Pull yourself up by your financial bootstraps and look at what you make and what you spend – develop a budget plan.