How to Know if You Are in Major Debt
It can be easy to lose control of your finances if you develop unreasonable spending habits, take on large loans, and rely too much on credit cards. Whether it happens quickly, or over a longer period of time, it’s not difficult to end up in a bad financial situation by taking on more than you can afford. If you’re not taking active control of your loans, spending habits, and income, you may be on your way to major debt.
If you’re concerned about your financial state, here are some ways to check if you’re in (or are at risk of) major debt.
Are you paying bills late?
Bills being paid late can be the first sign of major debt. Finding yourself unable to meet payment deadlines reflects loss of control over your finances. You may have multiple payments to make which never seem to stop. It’s important to note that making late bill payments can impact your credit score and you may end up paying higher rates on loans, and other services. You may even start getting calls from debt collection agencies.
At QuickCash we offer debt consolidation loans. This combines all your bills into one single loan so you only need to follow one single repayment schedule. We also offer fixed interest rates throughout your payment period. You can apply online for a debt consolidation loan which can be approved within 25 minutes, or call us on 0800 784 252.
Does the bulk of your income go towards paying off loans and debt?
If the majority of your income is being used to repay loans you may need to find ways to decrease this. Take time out to reevaluate your income and expenditure. Figure out where your income is going and what it’s being used for. Sitting down and putting together a budget will show you how much of your income is going towards monthly payments, groceries, car loans, electricity bills, etc.
Having multiple loans to pay off is a sign that you’re already involved in, or are heading towards major debt. You might find that combining all your loans into one using a debt consolidation loan might make things easier to manage.
Are you experiencing negative effects on your wellness & family life?
Major debt is a huge source of stress for anyone affected. If you find yourself struggling to sleep, neglecting your health, or looking towards drugs and alcohol for support due to financial anxiety, you may be struggling with major debt. Not being in control of your payments and loans can impact your lifestyle, relationships, and routine, resulting in negative side effects physically and emotionally.
Hiding your spending is another sign of being in major debt. If you think people around you might judge your purchasing decisions and confront you about your spending, then it must be clear to others that you’re not in a comfortable financial situation. Before buying anything, try to figure out how long you would have to work to pay for the item you’re looking at. This can give you perspective, and help reduce unnecessary purchasing.
Are you unaware of how much you owe?
Another sign that you could be facing major debt is if you don’t know how much you owe, or what payments you need to make. Being unaware of your financial situation means you may end up borrowing more than you need. Borrowing more than absolutely necessary means it becomes more and more difficult to manage and could lead you to major debt.
It becomes difficult to track how much you owe when you have multiple debts, especially if they all have different interest rates any pay schedules. You can simplify your borrowing by consolidating your debt with QuickCash. Turn multiple debts into one, and easily track the total amount owed with a debt consolidation loan. We also provide fixed interest rates and free you of any early repayment charges so you can pay off your debt as soon as possible.
Have you been declined for purchases or new loans?
If you feel that another loan or credit card will solve your financial situation you could be at the start of a major debt spiral. If you are denied further loans or credit cards it could be a sign to stop and evaluate your finances. It’s often better for your finances, and credit score, to try and pay off existing debt before applying for new loans.
If you use your card for frequent purchases such as grocery shopping or paying for fuel, but it declines, you could have a major debt problem. Setting up a routine of paying off your existing balance will help you stay below your credit limit.
Do you lack a budget or any savings?
Contributing to a savings account ensures you’ll have money available to pay for bigger purchases or any emergencies in the future. If you find it impossible to save money because all your income goes towards other expenses like loan payments, then you may be dealing with major debt.
If this situation sounds familiar then it’s likely you don’t have a budget either. A budget helps you to take control of your finances. It involves tracking your income and ensuring your spending doesn’t outweigh it. Being aware of (and tracking) the payments you need to make will help you reduce unnecessary spending.
The sooner you create a budget and take control of your finances, the better. If after reading this article you’ve realised you might have a major debt problem, consider contacting QuickCash for help. With QuickCash you’re dealing directly with the lender which gives you confidence and peace of mind. You can apply online for a debt consolidation loan and get approved within minutes, or call us on 0800 784 252 to find out about your options.
Disclaimer: This article is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser. Past performance is not a guarantee of future performance.