If you struggle each month to pay the minimum due on all your debts and bills, you may console yourself by saying that many others are in the same situation. You may do your best week after week and still find you are barely treading water where your finances are concerned. In fact, you may wonder how close you are to sinking.
It is not always easy to know how close you are to the edge when you are spending your energy trying to keep your creditors at bay. In the back of your mind, you may know that one setback could bring everything crashing down. You may find it helpful to recognize some of the indicators that you might have too much debt to be financially safe.
Is my debt situation really that bad?
One red flag that your debt is out of control is when you have lost track of the amount of debt you owe. Often, this occurs when people simply can’t face their debts, and they ignore what they owe instead of dealing with it head on. If you aren’t sure of the total amount that you owe your creditors, you may be in a dangerous financial situation. Other signs that your debt is out of control include the following:
- You have no savings, no emergency fund and no retirement plan.
- You use credit cards or bank loans to cover routine expenses like groceries and gas.
- You borrow money from friends, family or payday loans to pay your bills.
- You are afraid to talk about your debt with your partner.
- You are regularly late in paying your debts, or you skip payments because you don’t have the money.
- Your job is suffering because of your preoccupation with your finances.
- You find yourself drinking alcohol or using other escapes to avoid your debt problem.
Overwhelming debt can affect your whole life. You may lose sleep, be afraid to answer the phone or suffer physical effects like headaches or stomach problems. The good news is that you have options for dealing with your debt. By speaking with a skilled attorney, you may learn how to stop harassing phone calls from creditors, end threats of wage garnishment and repossession, and halt the process of foreclosure on your home. A New Jersey attorney can answer your questions and guide you in the appropriate alternatives for your circumstances.