The onset of financial trouble is some times obvious: The loss of a job, fire, or accidents can put financial strain on the best of us. In these cases the cause is well known and while we may know that increasing income or paying down debt is the obvious solution, implementing is not always possible. However, there is a number of warning signs that can appear that we may not recognize and are self inflicted.
Here is a list of the early signs you are heading for financial trouble, signs things are getting more serious and finally signs that you may be past the point of no return.
Early Signs Of Financial Trouble
- Lack Of Financial Goals.
- Lack Of A Budget Or Cash Flow Plan.
- No Idea How Much Money You Owe Or Debts You Have.
- Spending Money On Things That Are Not Necessities Instead Of Paying The Bills.
- Using Credit Cards To Pay For Necessities Or Because You Do Not Have The Cash.
- Misrepresenting Purchases To Your Spouse.
- Avoiding Discussing Finances With Your Spouse.
- Credit Cards Are Maxed Out Or At Their Limits.
- Borrowing Money To Pay Bills And/Or Other Debt While Using Available Credit.
- Choosing The Longest Possible Payment Period On Loans.
- Only Able To Make The Minimum Payments On Your Credit Cards.
- Repeatedly Using Savings To Pay Regular Bills.
- Little Or No Savings.
- Lack Of Or Inadequately Funded Retirement Account.
You Financial Situation Is Getting More Serious
- You’ve Been Turned Down For A Loan.
- You Are Afraid To Open Your Mail.
- You Are Taking Cash Advances To Pay Another Credit Card.
- You Bounce Checks And Overdraw Your Bank Account.
- Paying Bills Late Or Missing Payments Altogether.
- Taking Home Equity Loans To Pay Credit Card Debt.
Critical Warning Signs Of Financial Collapse
- Excessive Debt Payments (More Than 20% Of Take-Home-Pay (Excluding Mortgage Or Rent).
- You Pay Your Bills Late OR Paid When You Can And Not When They’re Due.
- Mail Is Not Opened If It Looks Like It Could Be A Bill Or A Collection Notice.
- Getting Calls From Creditors.
- Depending On Others To Help You Out.
- Using Payday Loans.
- Garnished Wages.
- Services To Your Home Have Been Cut Off.