A lot has happened in the past 18 months!
We are having a pandemic, the economy has been virtually shut down, travel was very limited, and we could not spend time with family and friends.
However, things are changing and getting back to the new normal.
As we get out more and shops and stores open back up to in-person sales, our economy will rebound, and soon the skies will open back up again so travel and tourism can get back to our usual way of seeing the world.
Many people during the almost 12 months of lock downs did their shopping online, even their food shopping. Shopping online requires a credit or debit card as there is no place to put cash in the computer. In fact, due to the pandemic, we are moving even closer and more quickly to a cashless society.
With all these cards being used and online purchases, it can be easy to find oneself in debt, and not realise it was happening.
So just a few warning signs you may be sliding down the slippery slope of debt.
Juggling Bills: Who to Pay
When you have to decide who gets paid and when you pay them, it can be a warning sign.
You cancel direct debits and standing orders so you can transfer payments when you know you have the money, and then paying who you can, when you can.
Using Credit Cards for Daily Purchases…Such as Food
Using credit cards to make purchases, even daily purchases is OK, the convenience of the card is a good reason. However, buying food and some other essentials is not the reason to use credit. Of course if you pay the balance off in full each month, OK, if you do not pay the balance in full each month, it leads into the next warning sign.
Also, using credit cards to make a cash withdraw, withdrawing cash on your credit card…another big warning sign.
Credit Card Balances Going Up…Up…Up
If your credit card balances continue to increase, this is a huge warning sign.
Using credit and credit cards in itself is not a problem, it is when you continue to use the accounts and do not pay them down or off. Just making the minimum monthly payment on credit cards will keep you in debt for many, many years.
Balances going up = warning sign.
Consolidation loans, or getting a consolidation loan, is in itself a way to get out of debt, however there is a huge caveat here, and that is in the question of, how did I get to this point?
If you consolidate debts, only to continue debting, you have not resolved the issue, and will only spiral into more debt.
Having to consolidate loans or debts, can be a warning sign.
Not Opening The Post or Emails or Messages
The reason you do not open the post, emails or messages is because you know what they are about or going to say, your account is past due, late, in arrears, or worse yet in default.
Living in Your Overdraft
If you constantly need to “hit” your overdraft each month, it means you do not have enough money coming in, or too much going out.
Another warning sign.
These are not all the warning signs of possibly being in debt or facing a debt issue, but you get the idea.