5 Signs That Your Debt Is Getting Out Of Control
Britain’s household debt mountain has reached a new peak, with UK homes now owing an average of £15,385 to credit card firms, banks and other lenders, according to the TUC.
If you’re struggling with debt but aren’t sure whether your situation is manageable or not, here are five signs you’re in over your head:
1. Your Debt Increases Every Month
Even if you are managing to make your minimum payments each month, if you are spending more than you pay, you’re increasing your balances with each new purchase.
2. You Can't Wait For Your Next Paycheck
If your paycheck doesn’t seem to last the month and you struggle to cover essential bills, chances are that you are one financial emergency away from a crisis.
3. You've Borrowed Money To Pay Your Bills
If you’re borrowing money from family and friends to cover your bills, it’s pretty likely that you’re in over your head. You may have trouble repaying these loans unless something drastic changes with your debts or spending habits.
4. You're Not Keeping Up With Minimum Payments
If you are barely keeping up with minimum payments each month, let alone pay anything extra toward your debt, then you need to find a way to lower your monthly outgoings or earn more money.
5. Debt Collectors Have Started Circling
If debt collectors have started hounding you over unpaid bills, then your debts have definitely grown out of control. Since your debt is in collections, this means you’ve fallen behind and failed to keep up with your monthly payments. Your credit score will start feeling the effects of your default rather quickly at this point, and you need to find a way out.