Signs That Your Debt Has Become Your Biggest Enemy

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In this life of ours where we have so many to spend, saving just seems to be a myth. Today, almost majority of the people have at least one or two debts which they are paying. Well, there is nothing wrong in that too as no one knows, where he/she may encounter a delicate situation where they need financial assistance. However, too much of anything is a bad thing and there are many people who rely on debts way too much that they should.

Need house renovation? Max out your credit card. Need a new car? Why not go for an auto loan. Planning a holiday vacation?  Let us turn it into a reality by taking a debt. There are tons of people who are either convinced getting a debt is the best idea to fulfil all your needs. Well, people don’t realise that in order to gain short term pleasures, they are trapping themselves into a long term trouble. Here, in this blog, we have outlined 4 signs that suggest that your obsessions with debts have gone above the head and you need to take effective steps immediately. So let us see them one by one.

Signs that your debt is beyond your control to manage

If you are in debt, but you are unable to figure out whether you can manage it or not, then these are the signs that might help you with that:

  • Having difficulty in even paying up the minimum amount

You find multiple debts difficult to handle in getting the minimum amount ready for the monthly payment. Keep in mind that paying up only the minimum amount is not going to help you in getting rid of your debt sooner. Thus, you need to figure out the way to pay more than the required amount as it will help in completing the debt quicker. If you have been saving to buy a new house, or get a new car, then you can hold your dream for a moment and try focusing on completing the loan as soon as possible.

  • Your credit score is in bad shape

Having too many debts affects the credit score of a person badly and he might find it very difficult in getting a loan from next time. Also, using credit cards to the maximum limit also affect the credit profile of a person. Thus, it is best advised to use your credit card only up to 50 per cent of the overall limit. And there is a way to get rid of your old debt i.e. to consolidate your debt by applying for unsecured loans with bad credit. There are many direct lenders who can provide you with loans even if your credit score is poor and you don’t have a guarantor to support. However, these lenders will see other factors into consideration such as the repayment capacity of the borrower, source of income, and might ask you to put something as collateral.

  • Your days are going by paycheque to paycheque

If your days are passing by where you have to wait for the next payday month to cover all your expenses, bills and rents, then you are just one random bill or financial emergency away to face a financial crisis. Keep in mind that a single delay in your paycheque or any financial miscalculation can force you into a problematic situation where you will find it very difficult to even pay your bills, rents and even in managing your daily expenses. Even if the situation arises where you no longer have a job and don’t have enough savings to fall back in, then you can go for unemployed loans without guarantor. These loans are mostly given on the short term basis that you can actually pay after you are back on track or you have found a new job.

  • You are on guilt

The last and most important is to see what your conscious mind is saying to you. Well, it is quite common that people stress over money, but if you are starting to have sleepless night due to your financial issues, then chances are strong that this must be something really serious. Many people get irritated due to this and spend too much time on arguing with their closed ones. If you really want to get rid of your debt, then you need to first know how to manage your debt. Wrapping up, so these were the signs that may suggest the amount of debt that you owe have gone out of your control and you need to take effective steps.

About Author

about author

Adrina Martinez

Adrina Martinez is a financial adviser at Personal Loan Lender. She has an experience of almost 6 years in the finance industry. With her excellent efforts, the company has been able to provide myriad of borrowers with financial assistance. Her incredible role is to explain various options to borrowers depending on their credit history and income statement, which has benefited both borrowers and Personal Loan lender. With genuine guidance, borrowers get personalised deals without any risk of falling in debt and the lender gets money back timely without chasing borrowers.