Debt acquisition is slowly turning into a usual activity. This is because lenders have been making it easy for borrowers to take money on credit. Most people who tend to disregard the obligation that comes with every debt acquisition become surprised at how much debt has been taking up most of their income. It usually happens to individuals who fail to comply with a proper debt management plan, without realizing that they have sunk themselves in deep debt.
Because of the ease in getting credits and loans from several banks and lending companies, it is possible for an individual to be involved in more than one loan. When this happens, he might neglect some and it would cause him to be in more debt because of the interest charges accrued. To address this issue, a borrower must always do a thorough assessment of himself, his lifestyle, and his financial situation. There are some questions that a borrower must keep asking himself so he can determine if he’s been into too much debt.
1. Are you finding it hard to settle your debts from several lending companies?
2. Do you tend to rely solely on your credit cards to pay for your food purchases, gasoline payments, and house rent?
3. Do your cards usually get declined when you make purchases made via credit card?
4. Are you constantly being bombarded by phone calls, emails, and registered mails coming from several lending companies informing you of your delayed payments and overdue notices?
5. Are you scared of opening your credit card statements just because you wouldn’t want to see how much you need to pay?
6. Do you notice that you pay too much to settle interest charges that no money is left for your savings or for other investments?
7. Do you find yourself borrowing against your stock investments and bond portfolios?
8. Are your emergency funds starting to go down the drain just because you kept getting money from it to fund for your other needs?
9. Are you having a hard time keeping track of your debts and credits and the interest charges you need to settle?
10. Are credit card companies declining your credit card application because of the negative reports found on your credit history?
If you answered yes to most of these questions, then maybe you are not aware that you have failed on having a concrete debt management plan.