5 signs that say you’re in debt
How to recognise when your debts are getting out of control
Debt – it seems to be a prevalent part of modern life for many people around the UK right now – and trying to survive without a credit card, a mortgage or even a small loan now and again is impossible for many.
Some people may be able to cope with debt and manage their money, while others struggle and find it harder to make ends meet every month.
Here are 5 signs that could indicate that you need additional help with your debts
1) Over-reliance on your credit card
Everyone uses their credit card from time to time and there’s nothing wrong with treating yourself to the odd luxury. However, if you find yourself using your card to pay for living essentials, such as food and accommodation, there is a serious cash-flow problem which needs addressing.
Similarly, using your card to pay other bills is a sure sign that you are in too deep. Many people across the UK have to juggle their finances to find enough money to pay everyone but adding essential living costs to your flexible friend is a clear indication that you could do with some help.
2) You don’t know how much you owe
Having no idea how high your credit bill is usually means one of two things: either you are so wonderfully wealthy that what you owe is irrelevant or your debt has climbed out of control. Many people who have to borrow more money than they can afford to repay studiously avoid looking at their bills in order to escape reality.
3) Avoiding creditor telephone calls and letters
Seeing an unknown number flash up on your phone is not normally a cause for concern, but if you feel a frisson of fear because you know you are behind with your repayments, it may be time to get professional help. If you continue to ignore letters and telephone calls, your creditors may well employ the services of a debt collection agency, which could mean a visit to your home. As a Baines & Ernst customer, we will handle all ongoing communications with your creditors so you don’t have to.
4) Working yourself to exhaustion
If you need to drum up a bit more money, taking a small, second, part-time job can be a great idea. The opportunity to make some cash in your spare time by working a few extra hours, either in overtime or elsewhere, could help your financial situation.
However, there are limits and if you are working all the hours under the sun with no time to relax or spend with your loved ones, it will only be a matter of time before you crack with exhaustion. If this sounds like you, don’t ignore the warning signs – your finances need a thorough overhaul, rather than just a few extra pounds in the bank.
5) Your personal life is affected
Everyone gets grumpy from time to time and relationships naturally have their ups and downs, but unmanageable levels of debt take their toll on personal relationships. Feeling irritable, emotional or short on patience are indications that the burden of dealing with your debts is too great for you to carry on managing on your own. Some people also find that their sleep suffers, making it even more difficult to cope with everyday stresses and strains.
How to get out of debt
If you realise debt is a problem for you, don’t wait any longer. The sooner you get advice, the sooner you will be on the path towards a debt-free future.
There are a number of solutions available – so it’s important you know which one will suit you best. Our team of friendly advisors can talk you through each of the options and advise you on the best one for your situation and budget.
You may find that consolidating your debts into one affordable, lower monthly payment with a Debt Management Plan could be the solution for you, or you could qualify for an IVA – a debt solution that helps to repay debts at a lower rate and have some debts written off after 5 years.
Perhaps you’re on a very low income and can’t afford to repay debts, in which case you could qualify for a Debt Relief Order.
We offer a no-obligation financial review, so if you want to talk to our experts, give us a call. You can also complete the enquiry form and we’ll call you back if that’s easier for you.