Debt is a way of life for the majority of Americans. With the help of loans, many Americans pay for education, their houses, and cars. More and more Americans are taking on debt and this includes a huge number of young individuals. Taking debt can really ruin your financial life, especially if you pay it off at a slow rate. Carry on reading and discover the top ten significant signs to knowing whether you will be in debt forever.
Signs One to Five
- Amount of debt you have
- Amount increase
- Using credit cards
- Relying on credit cards
- Payday loans
Do You Know How Much Debt You Have?
Upon hearing this question, you may think yes of course, but do you really? Surprising as it may sound, some individuals have no idea whatsoever. This is the worst way debt can ruin your financial life. You can never get yourself out of debt if you do not have a clue about how much you have. The reason to why you do not know is usually that you have so much of it that in the end you lose track. Do not let debt ruin your financial life, write it all down, and begin paying it off.
Increase in Equals Is Not Increase in Spending
Another way you ruin your financial life is by thinking having more money is a cause to more problems. This is a definite no-no as this is usually down to you, and how you choose to spend it. Extra money should be put towards paying down your loans, emergency savings, or paying off debt. If you spend it without thinking, then yes it will cause problems and will ruin your financial life.
Using Credit Cards
The majority of individuals use credit cards, even if it is to pay for daily items. This is the major cause and is responsible to ruin your financial life, even though many individuals still proceed with it. If you find it difficult to buy everyday items without using a credit card, then you may want to obtain outside help or government help. One thing you do not want is to ruin your financial life, which is what will happen with all that debt.
Relying On Credit Cards
Many individuals continue using credit cards even though they charge a lot of interest. These high fees may give one more time to pay off debt, which they take with the intention of doing so soon. However, what they do not realize is they have put themselves into more debt. One thing you must not do is rely on your credit card or quick fix solutions, as this will not help you, especially if you are already struggling to pay minimum payments. This will surely ruin your financial life and will cause you to stay in debt forever.
If you are going to be facing debt forever, it is likely you will be relying on many payday loans. A payday loan works by letting the user borrow a small loan with the security of paying it back with their next benefit check or paycheck. Payday loans are a quick way to get cash and are a trap. They will help ruin your financial life and will put you in much more stress and debt.
Signs Six to Ten
- Relying on others
- Getting turned down for a loan
- Avoiding creditors
- Lying about money
- Ignoring warning signs
Relying On Others
If you constantly find yourself financially relying on family and friends, this is a sign that your financial life is in trouble. Turning to others for financial help is not a bad thing, until the time you find that they are your primary source you always turn to. If you rely on others for financial help, you will never be able to build your financial independence and you may cause them worry about your current financial situation.
Getting Turned Down for a Loan
If you have been turned down for a loan that you have applied for, then this is definitely a bad sign. The reason behind this is usually because the creditor thinks you will not be able to pay what you want to borrow. This shows serious money management and calls for the necessary steps you need to take care of your financial problems.
If you owe past payments to creditors, this means you are not paying your bills on time, which signifies you do not have enough money. You may find yourself constantly avoiding their calls, but exactly how long will you do this? By doing this, you are on track to ruin your financial life, which means you will live with debt longer. Eventually, creditors will reach you, which is why it is better to handle the situation sooner.
Lying About Money
If you are frequently lying about money, not only will this ruin your financial life because others will not know, but it also takes you to a dangerous path. No matter how embarrassing or worse the situation is, it is important to come out clear.
Ignoring Warning Signs
All the warning signs above can ruin your financial life and will leave you in debt forever. Now that you know, and still choose to ignore them, then no one can help you. It is important you take control now and fix you situation whilst you still can.