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How to Recognize That You Need Debt Help

A lot of people who are saddled in high debt usually cut back on unnecessary expenditure, and start to keep a closer watch on their accounts. However, not everyone have the willpower to control their spending habits, and often such people turn to credit – counseling.

How do you recognize the point in life when you really need debt help?

  1. You’re depending on your money from savings or retirement savings account to pay your monthly bills

  2. You constantly get calls from your creditors regarding bill payments which have fallen overdue quite some time back.

  3. You find yourself working after office hours in order to pay your bills.

  4. Nearly 20% of your monthly income is spent on paying off your debts (excluding mortgage).

  5. You buy everyday necessities and pay bills with your credit cards, and rarely use cash to pay anything.

  6. Credit card companies refuse to issue you a credit card and banks don’t like the idea of lending you money.

  7. You’re using a new credit card to pay your existing credit card bill.

  8. You’re paying the minimum amount due on all your bills.

  9. You’re dangerously near your credit limit on your credit cards.

  10. You’re living on your previous month’s paycheck i.e. you don’t have any money left at the end of the month as savings.

  11. You let your bills fall due for a few days, or even weeks.

  12. You’ve started consolidating your loans, but you’re hesitant to close the accounts from which these loans originated, because you feel you may need it sometime or the other.

  13. You’re carrying more than 2 credit cards. Most places will accept either one of your credit cards, so it’s unnecessary to have more.

  14. You have no idea as to how much you owe on your credit cards, and you’re surprised when you see the amount owing on your credit card.

  15. Your application for a debt consolidation loan has been rejected. This would probably be because your debt – income ration is too high.

  16. You’re refinancing your loan, so that you can pay less every month. However, you’d end up paying a lot more at the end of the loan.

  17. You hide your credit card statements from your spouse.

  18. You’ve underinsured yourself so that your insurance payments would be small.

  19. You’ve just lost your job, and you’re scared to death thinking about how you’re going to pay off your credit card bills and loans.

  20. You’ve taken out a payday loan at a triple – digit interest rate. The payday lenders would try to convince you that such interest rates are normal, but the moment you even consider taking one, just remember that you’re heading for a serious disaster.
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