If you’re constantly in debt then you may have a real debt problem. This may seem obvious but the majority of people who find themselves in debt don’t realise this is where they are heading until it’s too late.
Here are some signs that could mean you have a debt problem that you really need to fix:
- If you are only making the minimum payment on your credit card each month then you’re effectively on a borrowing plan that will last forever because you are never dealing with the interest costs that’ll build up.
- If your credit cards are always maxed out then you have a problem. This is particularly true if you spend more than you make because people will eventually stop lending.
- If you’re raiding your retirement fund or savings to pay bills then you are damaging your future prospects. Think what will happen when these funds run out.
- If you spend more than 15% of your income on your credit card fees then you have certainly spent too much. Consider that this is three days worth of work a month to help you think twice about how much you spend.
Source: http://business.financialpost.com/2013/07/06/debt-row-insolvency/
