How To Know When Your Debt Is Too Much

Getting into debt is easy, but digging yourself out of it seems quite impossible.

Here are some warning signs to help you realise when enough is enough and it’s time to make a change before you come to a point where you have to wonder what got you into that hole as you desperately struggle your way out out it.

1. You’re Adding To Your Balances Every Month

Adding to your already piled-up debt is easy to do if you’re not tracking your spending and closely watching your credit card balances. Simply recognising that your balances are growing is enough of a wake-up call. If your debt still went up after paying your bills, it’s a blaring sign that it’s time to change.

By tracking your spending, you’ll be able to make big changes and pay off your debt over time.

2. You’re Living Paycheque To Paycheque

If you’re living down to your last dollar and you have to put your groceries on credit, then it’s probably time to realise you have too much debt. When your debt consumes so much of your income that you’re living down to the wire, it’s high time you do something about it.

3. When Debt Stands Between You And Your Dreams

With huge monthly repayments to make, you’re probably living life in restraint, — you may not be able to take your dream job, venture on a new business, or live the life you truly want to live. So, instead of thinking about the should have, would have, and could have, pay close attention to your money and get out of debt. It’s time to realise how much more could you live your life if there’s no debt shackling you down.

4. Your Net Worth Is Less Than Zero

You’ll know your true wealth by deducting your liabilities from your assets. Don’t be afraid to see the numbers and face the fact about your true wealth or lack thereof. Though this might come as a hard slap in the face, it’s still worth knowing exactly where you stand.

5. You Add It All Up And Can’t Believe What You See

What’s more convincing than seeing all the numbers added up? It might be scary at first but you’ll eventually have to face the fact that you’re living irresponsibly, so why delay the inevitable? Delaying it could just get your balances piled-up.

6. Your Monthly Minimum Repayments Cost An Arm And A Leg

If you’re barely making the minimum monthly repayments, getting out of debt can take almost forever. And when your monthly minimum is more than you owe on anything else, digging your way out may seem almost impossible. You may be floating by each month and don’t know it because you don’t aggregate your finances, which could also mean that you’re not even making a dent on your debt.

7. Realising That All Your Money Belongs To Someone Else

Don’t wait until the time that your debt will make all your life decisions for you. It’s surely disheartening when all your expendable income goes toward debt payments. Find ways to improve your situation and stop digging further down to the debt hole.