Debt Overload—Enough is Enough

Many Americans are drowning in debt, yet seem to go on living that way, pressure and all. Cash advances here and there, rotating credit cards, bouncing checks, and so on. But how do you know when enough is enough? Where and when do you draw the line? How do you really know when your financial future is in jeopardy?

It may surprise you to know that just because you pay the minimum payments every month doesn't mean there isn’t a money problem. Making low minimum payments only benefits the credit card companies. You quickly become a slave to your debt, taking years to pay off goods that have already been consumed.
Red flags:
• Making minimum payments on credit cards.
• Using credit cards to buy things previously purchased with cash, such as food.
• Using more and more of your take home pay to pay off debts.
• Have more than two or three major credit cards.
• Getting socked with high interest rates and late fees.
• Cannot pay off credit cards balances in full each month—always increasing your balance.
• No savings.

If any of these bullet points sound familiar but don’t necessarily alarm you, realize that it can really lead to serious financial problems.

Additional signs that your debt has gotten out of control:
• You're at your credit limit on your credit cards and have asked for more, or you’ve paid over-the-limit fees.
• Writing checks hoping they’ll be covered by the time it clears the bank.
• You bounce checks.
• You don’t know the total amount of your debts—you don’t “want” to know.
• Taking out cash advances on your credit cards to pay other bills or just to spend.
• You’ve been “declined” when trying to make a purchase.
• You don’t open your mail/bills.
• You seek additional credit, only to be denied.
• Collectors have been calling you at home or at work.
• You owe friends or family members money.
• You lie to your spouse or other family members about your spending or bills.
• You hide credit card statements from your spouse.