Wallowing in debts can be very stressful and worrying. Not many want to be indebted, but due to varying issues and poor economic conditions, we find ourselves incurring more debts than we can handle. Being indebted is one thing, having too much debt is a different kettle of fish altogether. Apart from raising your stress level, too much debt could affect your finances and can be embarrassing in some cases. Here are a few indicators that the debts you’ve incurred have become unhealthy to your finances.
When you are in a hole, stop digging
The fact that you can’t say for sure how much you owe is a clear indicator that you may have more debts than considered healthy. A lot of people owe so much they are too scared to keep track of the amount they owe. Others simply don’t care, as they are nonchalant towards their finances. So, the first thing to do is to stop borrowing. You may not be financially capable of clearing your debts at once, but it is a great idea to keep track of them. It not only keeps you informed of your status but motivates you towards clearing your debts.
You become selective in paying your bills
The only reason you have more bills is that you have a lot of debts. Bills pile up when you don’t pay them. They don’t disappear; rather they form this huge debt that leaves you feeling like you’ve dug a big hole for yourself at the end of the day. When you notice that you’ve become selective in paying your bills, you probably have a debt problem. The best way to avoid this is to try footing bills as they come. Don’t let bills sit for so long. Most bills come on a monthly or yearly basis so it doesn’t exactly take you by surprise. Plan your money in a way that will enable you to take care of your bills.
READ ALSO: http://Oshiomhole’s many sins
You don’t have a money-plan, budget
If you aren’t making money-plans, it’s s most likely you have huge debts. There should be a plan in place for settling outstanding debts to reduce overall debts. Make provision in your budget for clearing off old bills. Have a working plan on how to handle your debts. You should also as a matter of importance use a budget in planning your spending. This way, you would be able to track what and how you spend your money.
You are always borrowing
The funny thing about people who borrow a lot is that they never have enough to pay and they are always coming back to borrow more making their debts pile up. If you borrow so much from all indications your debts are going to be too much as well. Try to live on what you earn and if what you earn isn’t enough look for other means to support yourself.
Ways out of your debt mess
Try to help yourself by keeping your debts to a minimum. Pay off old debts and manage current bills with tenacity and with discretion. The fewer your debts, the better. If you find that you fit into one or more of these categories, you need to stick to the above simple tips to free yourself from indebtedness else, you’re heading straight and fast towards bankruptcy.
