Is it more and more of a struggle to pay your bills each month? Do you find that you have less money left over at the end of the month (if any)? Here are some questions to ask yourself if you think you might be going into debt:
- Has your financial situation changed significantly?
- Are you making less money than you usually do?
- If so, is it temporary or will it likely be a long term adjustment?
- Is there anything you can do to increase your monthly income?
- Do you have any new debt or any lingering debts that you’re unable to pay off?
- Do you feel like you’re just barely able to stay on top of your finances as it is and even the slightest added debt could push you over the edge?
- Are you paying for everything yourself or do you share the financial burden with a partner?
- Do you have any money left over at the end of each month or does all of it go to your expenses?
- Realistically, will you be able to maintain your current financial momentum 3 months from now? 5 months? A year?
Force yourself to look at your financial situation as objectively as possible. Look at all of your accounts and create a log of exactly how much you owe. Then take your feelings out of the equation and ask yourself: Are you going into debt?
If the answer is yes, then it’s not the end of the world. In fact, the sooner you accept that there’s a problem the easier it is to get yourself back on the right track.
Much like with a health problem, catching the problem early is key. Even if your credit score hasn’t actually started to suffer yet, prevention is absolutely vital.
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