Is debt beginning to weigh you down? Keeping secrets about your spending habits and being afraid to admit even to yourself what you spend is one warning sign of too much debt. Here are a few more:
- Minimum payment = Big problem. Making only the minimum payment on revolving credit accounts can increase the amount of interest you eventually pay. Paying off balances in a timelier manner can save on the amount of interest paid long term.
- Maxed out. Those who are near the limit with credit cards or making payments then charging back up to the same balance from the previous month could be headed for trouble. Pay cash for items when possible, and work toward paying down your balances.
- Help, I don't have an emergency fund! If a flood could wash you away both physically and financially, you may be in over your head. Excessive debt is often a deterrent to saving for a rainy day or retirement.
I hope some of this helps you and your clients. We are living in hard economic times with lost jobs, housing issues, financial losses and government changes... We need to become financially responsible and see ourselves thru these difficult times. So, plan ahead, spend carefully and responsibly, and save for the "rainy day" like Grandma' used to say!
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