It can be difficult to actually see the warning signs that you have a debt problem.
According to research, debt has been linked to worry and sadness, as well as headaches, insomnia, and inability to focus.
That’s probably because most of us are concerned when we get too far into anything, fearing we won’t be able to pull out.
Recognising your predicament with candour and determination is a promising first step toward a financially secure future.
The time to act is now. The sooner you start making positive changes in your debt situation, the faster you’ll be able to overcome it.
Here are five warning signs that you have a debt problem.
Calculating a budget is the foundation of every financial strategy. The success of that plan is contingent on your ability to stick to it.
The quickest road to financial ruin is to consistently have more money going out than coming in.
To be a successful adult, you must be able to calculate and then manage a budget.
There are numerous programmes and apps available to assist with the work. You’ll need to cut spending or boost income, or both, until your budget, which includes provisions for saving and establishing an emergency fund, is balanced.
You may have a debt problem if you are unable to develop a budget that is both balanced and practical.
2. You lie about your spending
If you’re hesitant to inform others about your spending or debt, it’s a clue that there’s a problem.
If you’re scared about being judged or disgraced because of your debt, it’s normal to keep it to yourself.
3. You don’t have savings
You don’t have any money set aside. If you don’t have any money saved, it’s possible that your debt is preventing you from putting money aside for an emergency.
If you have to use a loan to cover an unexpected expense because you don’t have any savings, you’ll be adding to your debt even more.
4. Feeling hopeless
You know you have a problem if you’ve almost given up on the idea of getting out of debt.
There is hope, no matter how depressed you are. In truth, there are various options for easing the financial burden.
There are several debt management techniques such as debt snowball and debt avalanche to help you live a debt free life.
5. You don’t even know how much debt you have in total
If you don’t know how much total debt you have, it’s an indication that you’re not keeping track of your spending, and have no solid plans to clear your debt.
Alternatively, you may be aware that you have a debt problem but are unwilling to confront it.