3 signs your debt is too high

We live in a materialistic society. Social media accounts offer a tantalising glimpse of another world, one that we would love to be in. If you check out the feeds of some of the Rich Kids of Instagram, it’s hard not to be seduced by endless images of fast cars, luxury mansions, and gratuitous displays of wealth. Sure, we’d all love to own a Ferrari and spend a month in the sun on Mustique. Sadly, life isn’t quite like that, yet many people are determined to live a lifestyle they can’t afford.

Here are three signs your debt burden is overwhelming – and what to do about it.

Your Credit is Maxed to the Limit

Credit is useful. It allows us to buy things when we don’t have the cash upfront to pay for them. In some instances, credit costs us nothing yet gives us breathing space to settle a bill later. For example, you could take advantage of a zero-interest credit card deal and spread the payment of a new washing machine.

The problems arise when every credit card you own is maxed out and you have personal loans coming out of your ears. If you can barely make the minimum repayments and you’re withdrawing cash from one place to pay another, it’s a clear sign you’re in trouble and that now you need the help of Loans NZ to get out of such a big financial problem.

You Have Zero Savings

Savings are a safety net. If an unexpected expense comes along, such as an emergency car repair, you can dip into your savings account to cover the bill. Savings are like a rainy-day fund – they are there for emergencies and to pay for life’s little extras. If the expenditure seems exorbitant, you can visit sites like geld lenen and compare various loans to find the one suitable for you. This helps you in making the right decision as all the information such as the number of months you have to pay back the loan and the interest rate is all present on the site. 

It’s always a good idea to have at least three months’ worth of income put aside. At the very least, have one months’ worth of income.

People in debt have no savings. Instead of blowing all your spare cash on non-essentials, open a savings account and try to put at least 5% of your monthly income aside.

Your Outgoings Exceed Your Income

If you are spending money on things you can’t afford and don’t need, you have a problem. It’s time to cut back and start living within your means. Go through your income and expenditure and see where your money is going. Cut costs and stop splurging on unnecessary items like designer shoes and gym membership.

Try your best to get back into the black, but if you can’t manage or your debt burden is more than you can handle, move on to the next step.

If your cash flow problem is temporary, look at a short-term loan to get you through. Sites like https://qvcredit.sg/payday-loan/ can help you get through a tough patch. You can borrow up to £500 and pay it back over six months.

For more serious debt problems, it’s time to get real. Speak to a debt counsellor and look at ways to minimise your personal debt burden, perhaps through an IVA if you are eligible. Once you have it all under control, you can start living within your means once again.

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