SANDERS & YAN CPAs, PC

SANDERS & YAN CPAs, PC

Warning Signs - 15 ways to tell if your debt is about to overwhelm you

Warning Signs:
1) Calculating the debt load, excluding your home, and it is more than 20% of your net income (take-home pay).
2) Borrowing money to pay off other debts.
3) Paying your bills on time, but running out of cash between paychecks.
4) Using credit cards to pay for necessities because you don't have the cash.
5) Paying only the minimum payment on your credit cards.
6) Getting turned down for a consolidation loan.
7) Refinancing a loan to reduce your monthly payment.
8) Needing a co-signer.
9) Financing your vehicle for six years or more.
10) Consolidating your loans but not closing the accounts where those loans originated.
11) Counting on the next "Big Deal" to see you through your financial trouble.
12) Carrying more than four credit cards.
13) Waiting until near the end of your credit card's grace period to pay or request an increase in credit limit.
14) Hiding purchases from your family, or fighting with your spouse about how to deal with your financial situation.
15) Depending on parents and friends to bail you out.

If you think you're having financial problems, you are! If you're waking up in the middle of the night, you're already in trouble! Begin by creating a budget immediately. Track your spending, lock up the credit cards, and pay cash.