When Do You Know When You Are Over Your Head In Debt?

15 Signs That You May Need Credit Counseling:

1. Your credit card balances are rising while your income is decreasing.
2. You are only paying the minimum amounts required on your accounts, or maybe even less than the minimums.
3. You’re juggling bills. For example, you apply for another credit card and use cash advances from it to pay for an existing credit card.
4. You have more credit cards than a successful gambler has poker chips.
5. You are perilously near the limit on each of your credit cards.
6. You consistently charge more each month than you make in payments.
7. You are working overtime to keep up with your credit card payments.
8. You don’t know how much you owe and really don’t want to find out.
9. You have received phone calls or letters about delinquent bill payments.
10. You are using your credit cards to buy necessities like food or gasoline.
11. Your credit cards are no longer used for the sake of convenience, but because you don’t have money.
12. You are dipping into savings or your IRA to pay your normal monthly bills.
13. You are hiding the true cost of your purchases from your spouse.
14. You’re playing the card game by signing up for every credit card that sends you an unsolicited offer.
15. You have just lost your job, or are fearful that you are about to and are concerned about how you will pay all of your credit card bills.

There’s no magic number of the above statements with which you must agree to determine if you have a credit problem. If you see yourself in several of these instances, you still might be able to deal with you credit crunch on your own. But if you spot a trend, beware, you may need professional help.

Many who are weighed down with debt opt for self-help, trimming back on spending and keeping a close eye on accounts. But much like losing weight, some people have the discipline to shed a few pounds on their own while others require the help of a personal trainer.

Don’t panic if you occasionally shop surreptitiously, not letting your spouse in on your splurge. But if it’s becoming a routine or habit you have a problem.

Similarly, paying of minimum balances once in a while could be acceptable. But if it’s more than an isolated management misstep, you are headed for trouble.

If you see some of the warning signs outlined in this article, you need to take a serious look and find out why. Is it something temporary? Are you between jobs?

If it’s becoming a bad pattern, you need to be honest. Admitting you have a problem is the essential first step to go about solving it.

Don’t wait too long to get help. Getting help sooner rather than later can take months or years off the process of getting out of debt.

Once you’ve hit rock bottom financially, it’s much harder to work your way out of it. Seeking credit counseling may be the best alternative.

Any trip to a credit counselor should be preceded by a thorough analysis of your family’s personal finances including money you have saved, how much you owe, and how much money you have coming in each month. Such an assessment will help you determine how much trouble you are in and how much assistance is required.

In the end, getting organized may be all the help you need.