1. You don’t like to check your bank statements or balance
You use your debit card assuming you have money in the bank. But you’re not always right and pray that your swipe doesn’t decline while you are standing at the till.
2. You’re racking up fees
You rack up overdraft and late payment penalty fees on a regular basis.
3. You use credit for the basics
You’re at the stage where you are needing to pay for food, petrol or utilities on your credit card. You are not 100% sure that that can afford the increased credit card instalment either.
4. You avoid opening bills or picking up calls from unknown numbers
The thought of opening your bills fills you with fear. You scrutinise the caller number before you answer the phone. This is a clear sign that you are in over your head.
5. More debt seems to be the only answer
You start to believe that one more loan or card will be OK and will help you out the hole. You talk yourself into believing that it will only be this one time.
6. You are paying one debt with another or choosing which bills to pay and how much of each you will pay
You transferred a credit card balance to another card just to keep them off your back. You use the available funds to the max to buy necessities. If you are getting to the end of the month and picking a bill to pay from the hat, this is evidence of over indebtedness. Same if you pay part of the due amount to each.
7. You ask family or friends for money or are considering high interest micro loans
You can’t afford all your expenses and you have to ask someone for a loan? You’re already in financial trouble. Or you might be trying to buy something you shouldn’t be buying.
If you see any of these flags then take measures to turn your situation around. This may mean taking a hard look at your spending habits and letting go of certain things.
By Gita Lowe, Performability (Pty) Ltd. Gita can be reached at firstname.lastname@example.org
Performability (Pty) Ltd is passionate about giving people the ability to perfom and provide training so that employees of all levels are financially literate. If your business is considering providing such support to your workforce, contact us to see how we can help.