8 Warning Signs That You’re Headed for Financial Trouble

By Michelle Pastor for Truston

Imagine this scenario. You know your co-workers can hear every word of your phone conversation, so in a whisper, you agree to pay the entire past due amount on your credit card.  You promise anything just to get off the phone even though you know you can't possibly pay it.  Soon after, the bank threatens to repossess your car and you have no idea how you'll get to work once it's gone.  But most upsetting to you is the house payment that's almost 30 days past due.  Even on pay day, there won't be enough to make up two months of house payments and you don't know how long until the mortgage company will foreclose.  You can't concentrate on your work for the rest of the day because all you can think about are your bills.

A financial situation can turn very quickly from good to bad.  What starts with a few late payments can snowball into a desperate state of repossession and foreclosure.  Because a drastic change may only take a few months, it's important to know some of the warning signs that you're teetering on the brink of financial trouble.

Here are eight signs you are on unstable ground:

  1. You pay only the minimum payment due on credit cards.
  2. You are near your credit limit.
  3. You have taken out a cash advance from one credit card to make a payment on another card.
  4. Creditors call you about payments.
  5. You have no idea the total of your debt.
  6. You have had more than one check returned recently for insufficient funds.
  7. You don't want to open your mail because you feel overwhelmed.
  8. Your debts make your home life unhappy.

The good news is when you catch it early enough, you have time to turn your situation around.  If more than one warning signs applies, now is the time to take control of your finances before they spiral out of control.  For help, contact a credit counselor in your area or try your company's employee assistance program (EAP). 

Michelle Pastor, MBA, AFC is an Accredited Financial Counselor, Identity Theft Specialist and Certified Credit Report Reviewer. 

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