Signs of Financial Trouble

Most people just don’t wake up one day in financial trouble. There are usually signs that you’re headed for a financial disaster. If you recognize the signs, you may be able to avoid disaster and get your finances back on track.

1. Your bank balance or credit cared statement is a surprise – you’re not paying attention to your finances and are probably floating payments and bouncing checks.
2. You have no savings – there’s no cushion to account for surprise expenses.
3. You carry credit card debt – you’re paying more for things by letting interest rack up.
4. You have no discretionary income – paychecks are spent before they are deposited and your fixed income may be too high.
5. You don’t know what kind of mortgage you have – you’re not keeping track of your expenses and may risk losing your home.
6. You’re uninsured – you have no protection should an accident occur!
7. Your business is losing money – you may start pulling some of your personal finances to cover business expenses, further over-extending your paycheck.
8. You’re borrowing form one lender to pay another – paying debt with debt never gets you anywhere.
9. You’ve missed a payment – missing payments can trigger fees and higher interest rates, digging you deeper into debt.
10. You’ve taken out a payday loan – again, paying debt with debt.