We all deal with different kinds of financial issues in various seasons of our lives. Many times, we start borrowing that we might meet our day-to-day expenses, business requirements, or financial deficiencies.
Soon, these debts start piling up on each other to heights that are practically impossible to manage. So, how is it that one decides whether his or her debts are too much to handle? How does one distinguish debts leading to bankruptcy?
What you need is a structured system to help you out with this. Laying out the right plan is important. For instance, deciding on the right budget helps. It will ensure that you have the right cash flow to keep your business active and generate more sales.
Seven signs of debt you need to Watch out For
Here are signs to look out for from NationalDebtReliefReviews.com, within whom there are many clients with similar issues. They may in fact have the answers you are looking for.
- You don’t know the exact amount you owe
You know the debts have been piling up when you’re purposely not ready to face it. In your mind, you have a thought that the amount may have increased so much that it will practically be impossible to pay off. Hence, you’re intentionally running away from it.
Stop running from your debts. Take hold of your situation and make an account of all your borrowings; use your latest account statements to do so. Calculate it and calmly start planning how you’re going to tackle the situation.
- You are frequently running out of money when paying off your bills
If you have debt payments much higher than you can currently afford, and you frequently run out of money while paying them off, you definitely have a debt problem. Consequently, the more time you take, the more your payments’ interest rates will increase how much you owe.
- You’re afraid to pick up phone calls
Phone calls have started haunting you. You have started feeling sceptical about every other phone call that you receive, and all that you think about is, “What if the call is from a debt collector?” Remember though, you can play the game of avoiding calls for only so much time. It is far better to sail your boat directly through the storm (for the winds are inevitable anyway). Understand that avoiding them for long might make them believe that the only solution is to sue.
- You’re frequently borrowing money to pay things off
If the loans you’re taking from your family, friends, cash borrowing places, and credit cards are bumping into your ability to pay off your bills, then you’re surely in deep trouble. You’re doing nothing but piling on debts, and gradually losing yourself in the vicious cycle of debts and debt payments. Eventually, there will be a day you’ll run out of sources to borrow from, and from there it will be incredibly hard to make a fresh start.
Try to increase your sources of income to pay back your bills without further borrowings (easier said than done, I know).
- You’re unable to sleep due to stress
Dealing with huge debts can really take away the better of you. You might be feeling anxious, stressed, tense, or even helpless, thus you may be struggling to have sound sleep.
Yes, it can be hard to deal with, but try and understand that worrying is not going to help you with anything. It is essential for you to stay calm and think about ways to get out of the situation with a cool, composed mind. Planning will help you reduce a lot of your stress and make your brain focused towards solutions rather than the issues.
- Red alerts are all over your bank savings
It is not always true that the absence of savings is a valid indicator of you being drowned in huge amounts of debt. But, if you have drained all your savings in your struggle to pay back the amounts, or, to pay your day to day bills, then you have reached the starting point of financial deterioration. If even after washing off all your savings, you’re unable to make ends meet, it is suggested that you have a look at all your debts and accounts.
- Living expenses are becoming unbearable
When you step out of the house to buy groceries or anything that comes under daily essentials, you have no choice now other than paying with your credit cards. It signifies that you are stepping into a financial crisis. You’re unable to sustain your current lifestyle on your own.
These few tips will ensure that you can repay your business debts easily, and help you get back to the normal times sooner than you know it!