Six warning signs debt is a problem
You would be hard pressed to find an adult in New Zealand who doesn’t have some debt, because even signing up for electricity supply or mobile phone plans are both forms of debt.
The Debtfix Crew has noticed many people have similar experiences when debt threatens to swamp them.
When you can cover the bills, rent or mortgage, the credit card and any loan repayments for something like a car, and you still have money to save for your goals – your debt is probably manageable.
What are some warning signs your debt is getting out of control?
You lose sleep because of money problems
It is normal to lose sleep when you have any thoughts spinning around in your head and almost everyone experiences this for good and bad reasons. If you’re lying awake at night because you’re excited about Santa that’s just fine. However, if you’re worried about a debt collector coming down the chimney – your debt has become a problem.
Even if you’re not worried about missed repayments but you can’t sleep because your headspace is full of money woes and overwhelming loans, you are showing signs of debt stress.
You borrow from one lender to pay off another
When you start searching online for a quick cash loan to pay off another debt or household bill, your financial situation is shouting out that your debt is unmanageable. Using a higher interest loan to pay off another debt is like swimming into a strong whirlpool that gets bigger and until it sucks you under.
Just don’t do it.
You keep thinking “if only…. then everything will work out”
Being optimistic is admirable and we all like being around people who look on the bright side of life. However, if you keep thinking your debt will disappear if something just goes right, like you’ll win Lotto or get a job that pays better, your borrowing is probably out of control.
Debt can become a problem when we think something that impacts on our financial stability is only a short-term situation and we don’t respond to manage our money in the new normal. None of us can ignore the long-term economic impact of Covid and if we continue to borrow money hoping life will change soon, our debt is likely to be unmanageable.
You avoid phone calls and messages from lenders
When you don’t answer your phone in case the caller is chasing outstanding debts, or you hide when you think a debt collector is knocking on your door, your debt has become a problem. You’re probably unsustainably stressed and living on high alert avoiding the inevitable email, text, phone message or final demand written on good old paper.
Your challenge is to face the reality and make a move to getting that debt sorted, rather than practicing your diversion tactics.
You avoid your buddies because you have no money
It can be hard hanging out with friends and whānau when it feels like they all have money, and you don’t. If you are concealing your debt and don’t want to be with the people you love because you owe money, you need help with your debts.
However, if your buddies or family are sabotaging your plans to become debt-free, you may well need to stay away from them until you feel empowered to live your debt-free lifestyle.
You miss out on essentials because you can’t afford them
If you are repaying loans but struggle to afford essentials such as food, healthcare, or rent and you don’t know what to do next, your debt has become critically unmanageable. If you skip meals so your kids can eat or get school uniforms, there are options to get your debt problem under control.
If you recognise the warning signs that your debt has become a problem there are always solutions that will give you back control.
Contact Debtfix now and we will navigate the stormy water with you and find a lifesaving plan that works for you.