Some debt is a part of life for pretty much all of us. So a fair question is, when does a “normal” amount of debt become too much? And when does a financial bump in the road become a serious financial concern? Take a look at the following statements. The more that apply to you, the more concerning your personal financial situation might be.
8 common debt warning signs
- Your creditors constantly contact you for payment of overdue bills
- You always make only the minimum payment on your credit cards
- You take cash advances from your credit cards or borrow money from family or friends to pay regular monthly living expenses
- Your wages are being garnished or your assets are being seized
- Bill collectors or collection agencies are calling you at work for payment of your bills
- You constantly pay interest and service charges on all your debts because you can’t pay on time
- You spend more than 40% of your take-home pay on your rent or mortgage, house maintenance and utilities
- You are always making arrangements with your creditors to catch up on missed payments
If one or more of these look familiar, you may have a debt problem—or be heading for one. Take action now!
There are many ways to address a debt problem. Schedule a free consultation with a Grant Thornton debt professional for help taking the necessary steps to get your finances back on track.
What to do when you spot warning signs of debt
There are many ways to address a potential debt problem once you’ve spotted the warning signs. The list of resources below will help you take action so you can manage your debt wisely:
- Set your financial foundation on the right path with these practical tips to help manage your debt
- Borrowing money can be done successfully. Learn how with these tips for borrowing money wisely
- Break habits that could be costing you more than you think—discover what those are in our article: how to find your frightful financial habits
- Know how and where to keep a pulse on your finances with 5 helpful resources for building your financial literacy
- Schedule a free consultation with a Grant Thornton debt professional for help taking the necessary steps to get your finances back on track