Rock Your Debt

In the fast pace environment of the twenty-first century that we find ourselves, a problem of any sort can occur and overpower you very quickly. This is a truism regarding one of the most devastating conditions in America today, namely a debt problem on every level of society. What is worst, is that many people do not realize that they may have a debt problem.

Doctors tell us that education is one of the better diagnostic tools anyone can have for a medical problem. Financial prognosticators have a similar axiom. We all need to know more intelligently how to carry out financial life especially as dark economic clouds appear about us.

Here are nine good questions to ask ourselves as we do a self-analysis of our financial condition to determine if a debt problem is looming in our future.

1. Have you established a personal savings program?Saving is the prime beginning of a good financial plan for anyone regardless of the size of your income. There are four basic steps for developing a workable savings program.
   • Make an accounting of your total income and be sure to include any money you receive that is in addition to what you earn.
   • Determine all fixed expenses that you pay for housing, insurance, and transportation
   • Arrive at an amount of money that you will need for emergencies and for special goals and establish a savings fund for that through your bank or other repository that is accessible, but not too easy for you to tap hap-hazardly.
   • Finally make a good estimate as to your daily financial expense needs and live within that estimate.
2. When you finish paying your monthly bills, do you make the same amount of debt as you did in the previous month?

If this is the case, it means that you are using your credit to supplement your monthly income, and that is not a good thing. As much as you may love your house, selling your house may be the best option.  Consider finding rent to own homes listings as an alternative to a huge mortgage.

3. Do you practice hiding your credit card statements from your spouse?

This is one big indicator that you have a debt problem and are hiding from it. A large symptom of immaturity at any age is denial of a problem especially a debt problem.

4. Are you receiving calls from collection companies?

You definitely have a debt problem if that is what is happening in your household. You must begin action immediately to get out of debt. Remember, debt is really a promise to pay a commitment made in good faith between you and the lender regardless of what it is for.

5. Are you only paying the minimum payment on your credit card debt?

Paying the minimum is truly only postponing your debt for an indefinite period of time. The only positive thing you are doing is providing a bigger paycheck for a longer time period for the creditor. If you can afford to pay more, start doing it right away. If you cannot pay more, cut back on spending until you can afford to pay more than the minimum. Paying the minimum is a significant factor for identifying a debt problem.

6. Do you have a complete tally on all your debt?

One of the biggest elements in a debt problem for someone is that they are clueless of their total debt. Don’t go another day without determining your total debt picture.

7. Do you try to play ‘beat the bank’ with your check writing?

A common symptom of a debt problem is check floating. If you knowingly write a check realizing there is no money in the account to cover that check, but are expecting money to be there when it arrives back at the bank you are guilty of playing ‘beat the bank’. It is a serious game that too often you will lose and it is a strong signal that you have a serious debt problem.

8. Are you in the practice of using cash advances to pay off other debts?

You are borrowing from a very uncertain future. Your cash advance source, which is most likely your paycheck, may not be there next week. Then what are you going to do? This is a very serious situation for which there is practically zero opportunity to extract yourself. Instead of seeking out cash advances, decrease the amount of your usual expenses to the point that your current income covers all of your expenses. Then you will be living within your means – a very safe place in times of financial trouble.

9. Have you been turned down for credit?

A sure sign of a debt problem is to be rejected on a credit application, especially for the extension of a line of credit that has already been established. It means that the creditor is functioning within his guidelines and that you may not be. Being turned down signifies that you are not able to satisfy the minimum requirements for their credit criteria.

If these questions have indicated a debt problem for you, take serious steps to get help right away.

You also may be interested in:

1. Creative Ways To Stop Living Paycheck to Paycheck
2. Ways To Eliminate Unsecured Credit Card Debt
3. 2 Ways To Eliminate Credit Card Debt Without Bankruptcy