7 warning signs that you have got too much debt

The world economy has not yet fully recovered from the damage caused by the global economic depression. As a result underemployment and unemployment are still quite common. Difficult climate demands prudent lifestyle. So you must get control over your finances and look out for the danger signs which indicate that some financial crisis may be approaching. The following are some “omens” which reflects the fact that you are treading along the danger avenue.

Borrowing your way out of debt

Do you borrow from friends, relatives or even resort to payday loans for temporary respite? If yes, then dark clouds of trouble are looming over you. When you are already in a financial mess, further borrowing will only increase your misery. You either need to spend less or you ought to negotiate with your lenders for lower installments if you are already in a debt.

Use of credit cards for everyday expenses

You cannot evade the responsibility to feed your family. However, buying groceries with credit cards just points out that you are in the red zone. You simply do not have adequate money to support yourself and your family. So the wise thing to do here is to bring down your lifestyle.

Also Read: 8 Mistakes to Avoid when using a Credit Card

You work efficiency is affected by economic pressure

Has your performance at the office dropped suddenly? Is financial blues the reason behind it? If the answer is affirmative then better be cautious. It’s surely a sign of excessive debt. Remember that psychological pressure will only lead you to loss of job. That will certainly push you in a deeper hole. Try to focus on what you need to do and that’s your best hope.

Drugs and alcohols are your best friends

Do you really believe that narcotics and alcohol is a sign of a healthy life? If you do then you are mistaken. It just shows, how hopeless you feel and it is only a desperate attempt to escape the brutal realities. Wake up and leave things that would ruin you. Be pragmatic and try hard. You can certainly turn things around before it’s too late.

Living paycheck to paycheck

A drained savings account is not a very assuring thing. In fact, it indicates that you are living on the edge. If an emergency comes up then you might not know who to turn for help. Debt might be the root cause of this situation. To combat it, you should try to build a rainy day fund and contribute to it whatever you can afford to. Even a little contribution will come handy in future

Also Read: 56 Ways to make your money work harder for you

Hiding facts from loved ones

Is your family aware that the monetary situation may not be perfect? Also, how honest are you about your spending? If you have started concealing facts from people who matter to you the most, then things are wrong and you know that yourself. To address the problem, you need to confess everything to your family, seek their advice and put a check on your expenses.

You no longer answer the phone

You stop answering the phone when you realize that it might be your creditors and you haven’t got any answers to their questions. Neither can you take their abuses anymore. The situation is absolutely alarming.


Most of us dream to live a debt free life. However, our dreams often turn into nightmares and we struggle to find a way out. To avoid such a situation, remember what you have read. It will help to you to sense the encroaching danger and can save your neck.

What are your views on this topic? How are you controlling your way out of debt, or to avoid it in the very first place? Do share your views in the comment section below.

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[Editor’s Note: This post is submitted by our Guest Blogger David Brown. If you also want to write for EquiTipz, please read the instructions to write a Guest Post.]

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