- Image by Renegade98 via Flickr
As a Money Coach, I’ve learned that individuals who are deep in debt generally fall into two categories. The first group can be classified as “overspenders and poor money managers.” These are people who’ve never learned to manage their money the right way – simply because no one’s ever taught them basic money-management skills. Others among them are just serious spenders. They’ve bought into this materialistic society that tempts us to always want more. That was my problem. When I was deep in debt I was a classic over-spender. I was actually earning a six-figure salary. But I was spending as if I earned seven figures. Trips to the Caribbean. Time shares. Expensive private school for my two older children. You name it. If I wanted it, I got it – mostly on credit.
Watch Out for The Dreaded Ds
The other set of consumers who are deep in debt have fallen victim to circumstances in their lives, misfortunes that I call the Dreaded Ds. This refers to anyone who has suffered a:
- Downsizing
- Divorce
- Death in the family of the main breadwinner
- Disease
- Disability
If any one of those five things happens to you or somebody in your family, it can throw your finances out of whack and force you to live on credit.
Are You in The Debt Danger Zone?
It’s possible that none of the Dreaded Ds has ever happened to you. But chances are you’ve experienced at least one of these setbacks – or you will in the future. However, you shouldn’t have to go through a major personal or financial disaster before you take action to rein in your debt. If you’re smart, and I know you are, you’ll want to pay attention right now to the warning signs that you have too much debt. Unfortunately, a lot of us are in denial about whether we have a problem with debt and credit management. If you’re making your credit card payments on time, if you have a decent job, or if you earn a reasonably high income, you might not realize you are in a “danger zone” in terms of your debts and bills. But don’t be fooled. You have too much debt or are mismanaging your credit if you:
- are maxed out on any credit cards – or very close to your limits
- use credit card checks to pay for other credit card bills
- skip payments you can’t afford
- don’t even know how much debt you owe in total
- switch cards to get lower interest rates just so you can afford the minimum payments
- argue a lot with your partner or relatives about bills
- lose sleep or feel stressed out over your debts
- get turned down when you apply for new credit
- receive phone calls from creditors or bill collectors
- need credit for everyday purchases like gas or groceries
- have a low credit score because of the debts you carry
If any of these symptoms describe you, trust me, you are likely operating in a danger zone with your credit cards and your debts – even if you don’t yet realize it. Start using the Zero Debt plan TODAY to get rid of excessive credit card debts and become debt-free.
Next – The Zero Debt 30-Day Program
