The signs that an impending debt problem looms are unmistakable. As monthly bills arrive and are placed into separate stacks representing bills to be paid upon receipt, and bills to pay at a later date. If your budget is working properly, no bills should be stacking up for payment at a later date.
Are You Paying Late Fees?
This is an indicator that debt problems have already arrived. Not only are you paying a penalty which adds to the difficulty of paying all of the bills, you are also risking a good credit rating as well. Promptly paid bills are one of the primary considerations for top credit ratings with the major credit bureaus.
Receiving Bill Collector Telephone Calls?
In case the accumulation of unpaid bills has not caught your attention, payment reminder telephone calls are another unmistakable sign that problems may exist. While it is possible that an occasional telephone call reminder to pay a bill can happen as a result of forgetfulness, do not ignore the possibility that the monthly budget is not working properly.
No Rainy Day Fund?
Every proper budget includes an amount of money dedicated to savings for unexpected expenses. If your monthly bills do not leave anything whatever for your rainy day fund, you are looking at a big sign that debt problems may already exist. It is important to identify areas of the budget that are out of control in order to have something left at the end of the month.
Responding to Debt Problem Signs
Basically, all debt results from deciding to obligate your income. In other words, debt is an individual decision made by each of us. If we decide to overspend our incomes, problems are to be expected. For that reason, it is necessary to make hard decisions in order to correct the problem of spending more money than is earned on a monthly basis.
Many people resist making changes because it is difficult to change a lifestyle that has been established. Despite the difficulty, it is necessary to make budgetary changes before the choice to do so has been forced upon you by ruining your credit availability. Once negative information has been reported to the credit bureaus, it can take years to eliminate unfavorable information.
The signs of impending debt problems are unmistakable, and ignoring them is foolish. If you are unable to correct the problems by making budget adjustments, it might be desirable to consult a debt payment counselor. Services of this type are easily found via Internet searches. Local banks usually have individuals who will advise those who seek assistance.
Ultimately, taking some type of remedial action is the only way to eliminate debt problems. Those who seek to correct their problems are often successful, while those who chose to ignore the obvious signs of a problem usually pay a very high price. If you see a problem, do everything possible to resolve it before it is too late for help.