How do you know you are in deep-debt trouble?
June 11, 2008
In general, when your expenses is growing higher than your income (both passive and active) you are in deep trouble as you will soon fall into lots of debt. If two or more of the items below apply to you, then it is time for you to think about your lifestyle and your sources of income:
1. You pay only the minimum of your credit cards or loans and yet they account for at least 20 percent of your total expenses;
2. You use cash advances from one credit card to pay another credit card;
3. You do not know how much your total debt is;
4. You receive a letter, email or call from your credit card company due to unpaid balances;
5. You are, in general, late in paying your debt obligations;
6. Lately, your credit card has been declined in stores or restaurants, as you have maxed your credit limit;
8. You have more than three credit cards and you all use them; and
9. You have more than three credit cards and you still apply to have another one.
If you can apply two or more of these to yourself, it might take months or years to bring back to normalcy your financial life. You need to plan on how you could pay all your debts and at the same time follow that plan.
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