Are you paying attention to your finances? Have you considered how much you could have been affected by the economic downturn? It’s harder to tell than ever whether or not we’re among the most ‘at risk’ in the country wide financial crisis. What should you think about when assessing whether or not you’re facing a financial disaster?
Do you know how much you owe?
Do you have a tight rope on how much you owe out each month or do you hide your face in your hands each time a bill is posted? Losing track of your spending is the quickest way to get into debt and the hardest way to get out of it – you don’t know where you’re spending big and what to cut out. This is a sure sign of financial trouble and an indications you have no control over your money worries.
Are you borrowing to pay off outstanding debts?
This is perhaps the biggest sign of financial trouble. By borrowing more to pay off existing debts you’re basically admitting you don’t have the money to pay off your other debts. Adding additional credit and payments will not help in the long run.
Can you afford savings?
If you can’t put any funds away for savings at the end of the month then this isn’t a good sign. You’re monthly outgoings could be swallowing up your salary and preventing you from making the emergency fund to get you out of future debt and, quite obviously, indicate that the majority of your outgoings are debts. If something arises other than a credit card payment, like an emergency breakdown, the stress with double in the form of charges when you sub your debt payments for something important.
Are you avoiding the situation?
Are you still spending even though money isn’t going anywhere and expenses are becoming extraordinary? If you’re avoiding talking about your huge credit card payment or phone bill, or quietly taking out another loan whilst still telling your partner you can afford to treat them to a three-course meal, you may be facing denial of your financial situation. Hiding from your troubles and hiding them from others only escalates a dangerous situation – don’t be afraid to admit to your tumbles and turns, ask for help.
Constantly worrying about your finances?
You may simply consider yourself a worry-wart, but be aware that this is the biggest shout-out when you’re in trouble. You should always tackle your main concerns before they grow – with your debt – and avoid denial or little secrets from friends and families. 61% of people don’t sleep because of stress when they’re in financial trouble – if you find yourself restless at the thought of next month’s repayments take it as the ultimate wake-up call and act immediately.
If you think you could be in financial trouble and are struggling to manage growing debts, get in tuoch with MoneySolve today for free, confidential, non-judgemental advice.