Assessing whether or not you have a debt problem is something many people find themselves having to do but when you don’t know what to assess against it can be hard to find the answer. There’s no hard and fast rule but with a bit of common sense and the following guidelines you can find out where you are at and what you should do about it.
Debt and income levels
Debt problems, come in all shapes and sizes and the amount you owe doesn’t necessarily determine whether or not you have a problem or the level of stress and worry it can cause. You do need to take into account the level of your debt in relation to the level of your income.
Key indicators of a debt problem
Every debt problem is different and your individual circumstances must always be taken into account, however there are some proven indicators that would indicate that you may have a problem.
Here are some of those indicators:
- You only manage to make the minimum payments on your credit and charge cards each month.
- You continue to use your credit card for purchases even though you are trying to pay it off.
- You don’t actually know how much debt you have.
- You find that you often do not have enough money left in your bank account to pay for essentials such as your rent, mortgage or council tax.
- You often get charged by your bank for interest and excess charges for exceeding your overdraft limit.
- Direct debits get returned and you incur the charges for this.
- You have been refused credit.
- You have taken out more than one payday loan in the last year.
- An income and expenditure plan shows you have more money going out than income coming in.
- You cover up to family and friends about the amount you spend and your debt.
Take action now and seek professional debt advice
If a number of the above indicators seem familiar then you may be at the start of a debt problem or already have a debt problem. The solution is to take action and seek independent debt advice. E-P Debt, provide free and confidential debt advice across Scotland and you’ll find the advisors there to be understanding of your problem and importantly, on your side.