When Do I Know I Have Too Much Debt? 

When Do I Know I Have Too Much Debt? 

Monday, 06 January 2020 08:48

If you find yourself asking, “Do I have too much debt?” chances are that the answer is yes. Even though the majority of Americans are carrying too much debt, it doesn’t make the situation any rosier. It can still cause you tremendous stress - and debt can easily become a self-perpetuating cycle. You miss payments, which raises interest rates, so you have to get another credit card to pay for expenses, which increases your monthly payments, so you have to choose which bills to pay… and on and on. What are the signs that you have too much debt - and what can you do about it?

 

5 Signs You Are Carrying Too Much Debt

How do you know when your debt has grown beyond your ability to control it without taking drastic steps?

  • 1. You Don’t Know How Much You Really Owe 

    Ignoring debt doesn’t make it go away. It doesn’t even make the stress go away. If you don’t know exactly what you owe, the situation actually becomes more frightening and intimidating. Take a breath, sit down with your account statements, and tally up what you owe. That’s the first step in making it back on track.

  • 2. You’re Afraid to Answer the Phone 

    When debt collectors are hounding you, it can get to a point where you don’t even pick up the phone. Again, ignoring the problem doesn’t make it disappear, and creditors or their collection agencies can take the next steps and sue you. Answer the call: ask about hardship programs or other techniques that can help you repay your debt (e.g. lowering interest rates, waiving late payment fees, etc.).

  • 3. Your Savings Are Gone 

    More than half of Americans have less than $1000 in savings, and many have little to nothing at all. If you’ve been borrowing from your savings account in order to pay bills (or even pay for nonessentials like vacations, eating out, etc.), it is a good sign that you need to take action to get out from under your debt.

  • 4. You’re Borrowing Money to Pay For Living Expenses or Paying Them With Credit Cards

    This is a big warning sign, and it can get you into more financial trouble. Friends and family can quickly become frustrated with the situation, affecting your relationships. When it comes to credit cards, you’re facing high-interest rates, late fees, and other penalties. Payday loans are even worse. It becomes very difficult to keep up. If you’re living on credit, seek help immediately. 

  • 5. Your Finances Are Affecting Other Areas of Your Life 

    You may be tossing and turning at night, worrying about paying the bills, losing your home, or being able to pay for groceries, heat, transportation, and other necessities. Stress may be affecting your health, your job performance, your social life, your relationship with your partner, spouse, and children. You may turn to alcohol or drugs to escape the pressure. These are all signs that your debt has grown into a monster.

The good news is that you can handle or stop debt. If you have tried methods that did not work, then do not hesitate to contact Robert P. Laney. An experienced bankruptcy lawyer, Robert will walk you through all of your options, and explain the pros, cons, and consequences, and help you determine which path is the best for you to pursue a more stable financial future. 

If you are carrying too much debt, it is not too late to take action. Start now.