December 12, 2022

10 Warning signs that you have a debt problem

debt problem

Are you concerned that you may have a debt problem? Perhaps you find yourself dodging calls and emails from debt collectors, or you’re not sure how you’ll make it through the month.

Falling into unmanageable debt can happen to anyone. If you still need to figure out if you have a debt problem, here are 10 warning signs to take notice of before it’s too late.

Top 10 warning signs of a debt problem

1. Spending more than what you earn every month

If you find yourself spending more than what you receive from your main source of income each month, this could be the first sign that you have a debt problem. Without having a budget in place, you can’t take control of how much you’re spending or work on reducing your debt repayments.

2. Borrowing money to pay your debts

Do you set aside money each month to pay your debts but end up needing it for other expenses? If you’re turning to banks, borrowing from your home loan or asking family members for help every month, your debt may be out of control.

3. Your debt repayments outweigh your living expenses

When you find yourself spending more on your debt than on your living expenses, you may be in need of help. This is especially true if you need to cut away from expenses such as groceries and rent in order to ensure that your debt is paid. One of the best options available is to go under debt review, as it is based on what you can afford.

4. Falling behind on necessary payments

Do you find yourself falling behind on school fee payments or keeping up to date on your car insurance? These necessary payments shouldn’t be ignored, but if your debt is overwhelming your finances, this could easily become the case.

5. Debt is giving you sleepless nights

Do you catch yourself tossing and turning all night with worry? Have you developed anxiety when you find yourself thinking about your debt situation? These are not normal concerns for those who are managing their debt correctly. If you are stressing more than usual about getting out of debt, you may have a problem that needs the help of a professional. It’s at times like this that Debtline can help you take control of your debt and let you get back to nights of peaceful sleep.

6. Creditors deny your requests for more credit

Being denied requests for loans or credit cards by credit providers is an important warning sign that you have a debt problem. Credit providers do everything they can to hand out loans and other forms of credit, as that is their business. Creditors only deny those who don’t meet the most basic requirements of being able to afford extra debt.

Read: Credit scoring explained and how to improve your credit score

7. Repaying the minimum doesn’t reduce your debt

If you’re only able to repay the absolute minimum every month, and it doesn’t reduce your debt, you could have a long-term problem on your hands. This is particularly true if you skip repayments and extra interest has built up on that account.

8. Regularly skipping repayments is the norm

If you find yourself regularly ignoring requests for payments from debt collectors or you simply don’t pay back your debts every month, you could have a problem. By skipping repayments, you can harm your credit score and incur extra fees and interest on debts which will take even longer to pay off.

9. You’re relying on short-term credit to make it through the month

When the month seems to drag on, and your income doesn’t cover your lifestyle and debt, turning to short-term credit solutions may be appealing. If you do this on a regular basis, you’ll be stuck in a loop of taking credit from potentially shady loan sharks, only to have to do so again the following month.

10. You’re avoiding calls from debt collectors

Finally, if you find yourself ignoring emails, letters of demand, and phone calls from debt collectors every day, you have a debt problem. Debt collectors will chase down payments relentlessly, and by ignoring the problem, it’s only going to get worse.

Read: Letter of demand dos and don’ts

Thankfully, we have a solution! Do you relate to any or all of these warning signs? Let Debtline help you convert your repayments into one manageable monthly amount. Contact Debtline today, and we’ll create a tailor-made debt solution that suits your needs.