Wednesday, March 29, 2017

7 Signs Your Debt Has Forced You Into Financial Hell

in debt no money
Some people don’t like to admit that they are in financial hell. They live from paycheck to paycheck and usually have no spare money to pay for any “unexpected” bills. And when they do want something, they’ll just pay for it with a credit card and not think about how they are going to pay it back!

There are many reasons why some of us end up in financial hell. While it’s true that a few people are just reckless with their spending, some end up broke through no fault of their own. For instance, they might have got laid off from work or had a life-changing accident that stops them from working again.

It’s likely you are reading this blog post because you think you might also be in financial hell. If you’re not so sure, the following seven telltale signs will confirm what you may have first suspected:

1. You use your credit cards as a magic source of money

Once you’ve spent your pay on bills, groceries, and other items, how do you pay for anything else until your next paycheck? If you’re just using credit cards as a secondary source of income, it’s likely you have entered debt hell.

2. You have no idea how much you owe

Do you spend your time just paying bills that you get without knowing how much you owe on them? If so, you’re just hiding away from the fact that you’ve got an enormous financial problem that you need to deal with.

3. You take on extra work, but you’re still in the red

Let’s say that you do recognize you have a debt problem and so you thought the answer was to earn more money. But, despite doing overtime at work or even taking a second job, you’re still paying out more than you are earning!

4. You can’t see an easy way out of your debt hole

Having weighed up the gravity of your situation, you just can’t figure out a good solution to your financial problems. Well, other than filing for Chapter 7 bankruptcy, of course.

5. You feel depressed about your circumstances

Do you have sleepless nights over your money worries? Do you worry about “the repo man” knocking on your door to collect your worldly goods? And are you seldom happy about much these days? Those three points alone prove that you’ve got a debt problem you need to resolve.

6. You have trouble paying your mortgage or rent

As you can appreciate, it’s crucial that you have a roof over your head. Without a place to call home, you’ll find it hard to get a job and move on with your life. If you struggle to pay your mortgage or rent on time each month, you’ve definitely arrived at financial hell, I’m afraid to say.

7. You borrow money from one lender to pay another

Arguably the biggest telltale sign of financial trouble is when you do some “creative accounting” by borrowing from one creditor to pay off another’s debt.

If one or more of the above statements rings true to your situation, it’s important to seek some professional debt counseling.

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