In the modern world Managing Debt is important otherwise debts have a tendency to pull your financial health. Presently the Consumer Debt of the USA is more than $ 2 trillion, a mind boggling figure indeed! And, it is rising and people continue to contract debts in a variety of ways, and some in really nasty ways like falling prey to Loan Sharks or to Predatory Lenders.
A person does not land in the Debt Trap suddenly. It is preceded by a number of warning signals, and if you recognize them in time than you shall not find yourself overwhelmed with debts and shall surely be able to manage your debts. Some of the warning signals are;
- Overspending - spending more than your income
- Ignorance about your debt liabilities and repayment commitments
- Credit Card Limits remain fully used up most of the time & you make only minimum required payments
- Rolling over the limit of one Credit Card/s to pay the demands raised on other Credit Card/s
- Non-payment of all your bills in time; sometimes skipping the payments of certain bills
- Refusal of loans by lenders
- You feel highly uncomfortable at unexpected expenses like mediacal bills or repairs of cars / other household items
- You receive calls and personal visits from your creditors or their recovery agents
- Thoughts of filing bankruptcy clouds your mind
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