Too Much Debt

It might be difficult to realize that you have come to a critical point in your finances when you have incurred a lot of debts than your income can realistically handle. Here are some of the most crucial questions to ask when determining if you have way too much debt.

Do you have savings?

If you’re struggling to save, then it’s also likely that you’re dealing with a good number of debts. Debts keep you from saving simply because you’d opt to try to pay down your debt than let that money sit in your savings account and incur penalties and additional fees for the non-payment of your debt. When you have way to much debt, you might also have less to zero savings.

Are you paying only the minimum amount?

You might be able to get away paying just the minimum, but if you don’t have a lot of debt, it will be easier for you to pay the full balance or at least throw in a significantly bigger amount to your bills.

Have you been rejected with another form of financing?

Lenders are now very savvy with whom they lend, and if you have bad credit, you’re likely to get rejected for financing. That’s because they think that bad credit equates to you having more debt, and in turn, more risk for the lender.

Fortunately, you can still borrow cash loans quickly even with bad credit. cash loans can give you a short-term financial respite for urgent monetary needs without that much stress and hassle. However, do remember that cash loans will add up to your pile of debt so do consider getting cash loans responsibly and when only urgently needed.

Do you have any idea of how much you owe in total?

If you can’t put the right numbers to your debt and don’t even know whom you owe with how much, then you’re likely having way too much debt. If debt is manageable, you would know how much exactly you owe, what the interest rate is and when you’re done paying the debt given your pace of payments. Otherwise, you won’t.

Are You Getting cash loans for Recurring and Expected Expenses?

While you might be able to take cash loans for virtually any reason, if you’re getting them to buy food or pay small bills, then you have a debt problem. cash loans can effectively provide you financing even in short notice, but they’re best used for emergency purposes.

Sometimes it’s overwhelming to know how much debt you have, but it’s also the first step to finally conquering your debts. It may seem like a slap in the face that you have way more debt that you can manage, but it will also wake you up to the reality about your lack in financial management skills and give you the motivation to finally strive to manage your finances properly.