12 Jan Are you in too much debt?

There is a fine line that can easily be crossed when it comes to financial security and sound decision making where finances are involved. For many, the relief of loans and repayment plans extending over an agreed upon amount is a lifesaver, while for others the reality of being over indebted is all too familiar.

What is it that separates those with reasonable financial obligations and repayments from those who simply have too much debt?

Becoming over indebted does not just happen, but rather escalates over time. From one bad decision to the next. In most cases, individuals who need to ask the question “am I over indebted?” already know the answer.

Our Less Debt team share a few common indicators of being over indebted.

One of the first signs of being in too much debt is losing touch with your financial reality and avoiding the truth. This leads to not knowing how much is owed and not being able to keep track of all your monthly repayments, creating blurred lines. When your debit orders and loan repayments are spread thin, it becomes necessary to keep track and always make sure that your loans do not get the better of you.

Another indicator of being over indebted is skipping bills or paying bills late because your budget is too tight. Having debt that you cannot comfortably afford to pay back almost always has bad consequences. Once this point is reached, it is important to make difficult decisions such as a change in lifestyle or undergoing debt counselling, in order to move forward successfully. Many over indebted individuals will go to great lengths to hide from their debt problems, by avoiding phone calls and emails from debt collectors.

Many times, those who are over indebted find themselves borrowing money from friends and family in order to make monthly payments, having already used up any savings they might have had. This is usually the last resort and is definitely a sign of having too much debt, as no financial institutions would be borrowing money to individuals that are already unable to meet their current financial repayments.

Apart from the above and more obvious signs of having too much debt, individuals who are over indebted are more prone to depression. Weighed down by the constant stress and seemingly never-ending cycle of financial distress. This affects sleep and also affects performance at work, leading to further complications. Many who struggle with being over indebted hide it from their loved ones, which places strain on relationships as the cycle continues over time.

At Less Debt, we offer debt review services, in order to assist those who are over indebted. By providing result-driven and personalised debt repayment plans, we can help our clients achieve a debt-free existence over time. Find out how we can assist you by getting in touch with our Less Debt team today.