Debt is something that can creep up on you if you are not careful with your borrowing. You constantly find ways to justify adding to your existing debt or you are blissfully unaware of exactly how much debt you are in.
Before you know it, you are stuck in a vicious debt cycle. This post lists 11 signs you are stuck in a debt cycle.
Let’s begin!
Signs you are stuck in a Debt Cycle
1. You only make the minimum payment towards your credit cards. Doing this means you will be in Debt for a long time.
2. You owe money on several credit cards and these cards have reached their credit limit.
3. You have no idea how much interest you are being charged on your debt.
4. You have very little or no savings or assets.
5. You are constantly stuck in your Bank Account Overdraft.
6. You are using Payday Loans to keep on top of things.
7. You add new debt once you have paid off your existing debt.
8. You rely on Interest Free options but then don’t pay them back within the promotional period.
9. You are struggling with your existing debt payments. You are borrowing more money to pay off your other accounts.
10. You are happy when you are accepted for more credit.
11. You are in denial about how much debt you are in or you simply do not want to know.
How did you do?
If most of the above examples apply to you, it is likely that you are stuck in a debt cycle. You might be thinking about how you can break the cycle and start to get out of debt. Well you can do this with a little restraint and patience but it isn’t always easy. Being in Debt isn’t exactly fun, and paying it back is not that exciting either but it has to be done sooner or later.
For example the first thing you need to do is to stop adding more debt onto what you already owe. If you have fallen victim to the payday loan trap then you also need to think about how you can stop. Below are several articles which provide help with debt. Please feel free to have a read of them.
– What to do when you can’t pay your Credit Card
– Escaping the Payday Loan Trap
Accepting your Debt Problem
Acceptance is the first step towards becoming debt free. If you don’t think you have a problem then you will just carry on as you are now. However before you know it you could end up in a lot of debt. Acting sooner rather than later is the best course of action. The sooner you act, the sooner you can start getting back on the right track.
As an example, if I had of acted much sooner, I might have owed £20,000 instead of over twice that amount. However hindsight is a wonderful thing and so whilst it is too late for me, it might not be too late for you!
