It is relatively common to accumulate debt over the course of one’s lifetime. After all, most people find that they need to receive financing in order to make major purchases such as buying a home, car, or even paying for higher education. So while a manageable amount of debt is perfectly normal and not anything to worry about, the fact remains that there is a fine line between normal debt and too much debt. So how can you know whether or not you have taken on too much debt? Fortunately, there are some common warning signs.
One of the biggest warning signs of excessive debt is having trouble in making payments on the money that you owe. For example, if you have a credit card that you are trying to pay off but are only able to make the minimum monthly payment, then this is a huge warning sign that you may have too much debt. Furthermore, if you have trouble even keeping up with making your monthly payments on time, then it may be time to re-assess your financial situation.
Furthermore, if you have recently applied for a loan or another type of financing but were denied, then this is a sign that your credit score has been negatively impacted by your excessive debt. In these situations, you may be tempted to turn to cash advances and other means of borrowing money, but what you really should be doing is turning to a financial adviser or debt consolidation service for assistance.
Now, take a second to consider how much actual debt you have in your name. Can you place a dollar amount on it or are you unsure? If unsure, then this is a pretty serious sign that your debt is beginning to get out of control. Furthermore, if you have ever found that you have had to lie to family members or friends about how much debt you have, then you may be in serious financial trouble and will want to seek advice and help immediately before the situation gets any worse.
Overall, it is one thing to be in debt but another thing entirely to be in debt to the point that it is affecting every aspect of your life. So if you have noticed any of these warning signs, then you may want to assess your finances and seek help to get yourself out of debt.