Debt Warning Signs

Debt Warning Signs

Debt has a sneaky way of creeping up on you then before you know it, you find people knocking at your door, threatening to take your belongings. Here are some warning signs to help you recognise when your debt is becoming a problem.

Receiving overdue payment letters

Forgetting to pay your bills once or twice and receiving a letter from your bill provider or a notification and charge from your bank is something that can happen to everyone. However, when this becomes a regular issue, it’s a clear sign that you’re in financial difficulty. Your bill providers will expect the money to be paid, and they’re likely to add on additional charges for late payments. Eventually, some bill providers may cut off your service, depending on which service you’re failing to pay. Don’t ignore these letters, get in contact with the company as soon as possible and explain your situation. They might be able to help or provide assistance, such as utility providers installing prepayment metres so you can pay for your gas and electricity upfront.

Living in your overdraft

An overdraft should be used in an emergency or as a buffer; it shouldn’t be seen as your money. A planned overdraft can be useful if you’ve had a challenging month and need to borrow a little money from your bank to see you through until payday. However, often people begin to see their overdraft as their money. This isn’t ideal, but it can become a bigger problem if something goes wrong and you need emergency funds. If your overdraft is already maxed out, you may need to seek additional help from friends, family or other companies that are willing to lend you money. This may see people taking out payday loans with high-interest rates that they can’t afford to pay back. 

Hiding your financial situation

Hiding your financial situation from your partner or yourself is a warning sign that you might need help with debt. Many people are embarrassed about being in debt and don’t want to admit to their partner how much they’re struggling to afford to do things. They may even continue as if everything is normal whilst they’re actually getting themselves into more and more debt. If this sounds like your situation, you need to stop and open up to your partner. Being open and honest is the best way to make your relationship a success. Once you’ve opened up, you can get financial help and advice from a professional. Experts can help with debt management solutions such as IVA advice, bankruptcy advice, help with administration orders and much more. Your partner is going to be much more understanding if you tell them your situation rather than continuing to hide it from them and lie about it. 

Hopelessness and a lack of sleep 

When people get into debt, it can lead to feelings of hopelessness and a lack of sleep. These two things put together are incredibly damaging to your mental health; if they’re ignored and things get worse, it could lead to anxiety and depression. Hopelessness and lack of sleep can make it more challenging to find the motivation to get back to work or work harder to improve your level of income. If your debt is constantly on your mind, you should speak to an expert and get a plan in place to tackle and pay off your debt. A professional will be able to review your financial situation and the current debt you have and work out the best debt solution for your circumstances. You’ll only pay back what you can afford, and you’ll be able to write off some of your debt as part of a debt solution. There are many options available, so don’t worry any longer, get in touch with a debt charity or a debt advisor to find out where to start. 

These are just some of the warning signs that your debt has become a problem, and you may need help to sort that problem out. There is no shame in getting in contact with a debt advisor or a charity to find out if there are solutions that can help in your situation; it might be the best thing you’ve ever done.


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