Many people have too much debt, but don’t even realize it. Having too much debt can be disastrous, and not something that you ever want. But, how do you know if you have too much?
Here are several signs that you have too much debt:
You don’t know how much debt you have.
If you don’t know how much debt you have, then you most likely have too much. You should know the exact amount, or at least a rounded up figure.
I read a story recently where some couples don’t know how much debt they have. They asked one half of the couple what the amount was, and many times the other would say an amount either much higher or much less. It is a scary thing, in some instances they were tens of thousands or hundreds of thousands of dollars away from each other.
If you don’t know how much you have, it’s probably because you are in denial. Putting the exact dollar amount in front of you will probably make the debt feel so much more real.
You can’t pay the full monthly payment each month.
If you can’t pay your credit card bill in full each month, then you obviously have too much debt. Carrying debt over month-to-month and paying interest fees on your debt should never happen, because it’s just a waste of money (unless, of course, you are earning more in other areas that make up for the interest – such as if the interest rate was at 0%).
You’re afraid of the phone.
You may be afraid of the phone because mainly only debt collectors are calling you. If the thought of a phone ring makes you jump out of your chair, then you have too much debt.
You are upset all the time.
If you have too much debt, then the feeling will start taking over your life. You will probably think about debt all the time, to the point where it mentally and physically depresses you.
Nothing is better than getting out of debt, let me tell you that. The thought of not having to pay bills that go towards past mistakes can be heavenly.
You’re not saving much money each month.
Lastly, if you are not saving money each month, then you probably have too much in debt. Your money may all be going towards your debt each month, thus not allowing you to save.
Do you have too much debt?
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