How to Determine If You Have Debt Troubles
Debt is one of those things that is easy for all of us to fall into. It just seems like when you are a single dad (father) getting into debt trouble can come even quicker without you realizing it before it is too late. Having debt troubles is not something that happens overnight but, it can be like a freight train that slowly picks up steam and will continue on until stopped by an outside force. Below are some true or false questions that you can ask yourself to find out if you are in need of some debt advice. Print the sheet below and see how you answer the questions.
_______ You are paying for items with your credit card now, when before you would pay in cash.
Simple purchases like trips to the grocery store or going out to eat have now become purchases with credit. If you have answered true to this question this is a big early warning sign that your finances are growing out of control and you are on the cusp of major financial troubles.
_______ You don’t have any money in savings anymore and worse yet, you are taking cash advances on your credit cards to try and pay some bills that are long overdue.
This is a huge sign that you are having some major problems with debt. Not only that you are making your problem worse by taking money that will have a huge interest rate so basically you are throwing good money at bad. Never take cash advances on a credit card to pay other bills. The interest rate over time will make the cost of the bill at least double if not more. If you are having a hard time paying for some bills, call the company up and see if they will work out some sort of payment plan so you do not have to take an advance on your credit card.
_______ You no longer have any idea on how much debt you actually have.
If this is the case you need to evaluate all of your finances this instant. In order to be able to handle and pay off your debt you need to know how much you actually have. There is now way you will ever be able to create a budget and get back on track if you no longer know how much you owe. If some of your bills have high interest rates you debt could grow very fast and out of control like a forest fire if you do not keep a watchful eye on your finances.
_______ You delay paying your utilities and your phone bills to pay off your high credit card debt or any other high interest bearing debt.
Delaying payment on some of your necessities like power and phone to pay off other less non-essential debt is not the long term way to fix things. If may give you some immediate relief but, down the road those utilities that you have put off could come back and haunt you. If you do not have power and water at your home for you and the kids is much worse than hearing complaints from collectors. If you don’t have a phone then you won’t be able to contact some of these companies and see if there is any way that you can try and get yourself some relief from these debts.
_______ You get letters and phone calls from collection agencies on a pretty regular basis.
This is a case when you are really going to need to get some debt advice. It would appear that things have reached their tipping point and something has got to give. If these collection agencies are trying to contact you do not try to avoid them. Try and talk to them and show them that you are sincere in trying to pay off your debt. So many people try to blow them off and it just compounds the problem because they usually end up in court and have even more debt to have to pay off. Try to be as honest and up front with them as possible and you will be amazed on how helpful they can be if you handle the situation like an adult.
To conclude, if you have answered True to any of these statements then you most likely have a problem with debt. There are many ways in dealing with this but, one thing is for certain is that if you try to ignore it, the problem will not go away. The only way to fix it is to take it head on and start a good budget. If it seems like this problem has grown and you need some help then, there a companies that can give you some free debt advice or you can hire a credit counselor. Being a single father (dad) can be a financially trying experience but, understand that you are not the only single parent to have these problems. Just identifying the problem can help you on your way back to financial freedom.