8 Signs That You Have a Debt Problem (Part 1)

Solving The Debt Problem Starts By Recognizing It
If the average person could look into the future and see impending dangers coming their way, they’d surely avoid them. When it comes to an impending debt problem, the writing is always on the wall… way before things get out of hand. In this session, I’m going to show you the eight predominate signs that let you know you have or you are definitely headed into the dreaded debt danger zone. Once you learn them, don’t ever ignore them…

Debt Problem Sign #1: You Have No Savings
This is the first and foremost sign that a person or couple is headed down the path to having a debt problem, potentially a major one. Savings are the bedrock of a sound financial game plan. If you have no savings and something happens, where do you turn to? Family members or friends? Pay day loans? Auto title loans? Charge more credit cards? Refinance your mortgage or obtain a hard money loan? The point being, you’re trying to solve one problem by creating another. Having savings puts you in the driver’s seat when things go wrong. 

Debt Problem Sign #2: You Are Not Disciplined At Saving
Savings just don’t happen; you make bank accounts grow through discipline deposits. My wife and I deposit 10 percent of everything we earn into savings. We’ve been doing that since we’ve been married. It hasn’t always been easy. We started right after I graduated from college, got a go nowhere job, got married and moved into in a rinky-dink one-bedroom apartment. We shared a Honda Civic that had 135,961 miles on it when we bought it. Things were real tight and that was most of the time; sometimes, all we could afford was Top Ramen soup, potpies and hot dogs.

BUT! In spite of those rough times, we never stopped our savings plan, not once! Because of our refusal to budge, there were some things we went without, actually a lot of things. But looking back, it was worth it. Today we are totally debt free. No home loans; we own our home. No car loans; we own our cars. No credit card debt. Nothing! Nada! We attribute our success to sticking to our savings plan no matter what.

Debt Problem Sign #3: Credit Cards Become Your Back Up Plan
I was recently in one of the major chain stores ordering some food for the staff and there is a young lady who works behind the counter who knows that I own a financial services company. She started sharing with me how she just received a credit card that gave her 0% over the next 12 months. She stated that she would use the credit card to bridge the gap in her pay until the interest changed.

It sounded like a good plan to her; but she’s headed into a debt problem real fast. The only time you should use a credit card, is if you can pay the full amount when the bill comes due. If you are using credit cards to bridge the gap in emergencies or make luxury purchases, you have a serious debt problem!

Debt Problem Sign #4: You’re Making Payments But They’re: Late, Minimum or Partial
If you find yourself making partial payments, late payments, or you’re just paying the minimum amount, make no mistake about it, you have a debt problem. The time to regroup is now! Don’t wait until debt collectors start calling and harassing you and your family. You really need to start looking at debt counseling or credit counseling immediately.

Click here for (Part 2) of, 8 Signs That You Have a Debt Problem 

William Phillips brings a degree in economics and an unwavering passion to help fellow Americans come from under the clutches of debt. He believes that with the right debt advice or debt counseling, anyone can recover from the stresses of being overwhelmed with credit card bills and other debts.

 Source: http://www.DebtErasure.com