5 Signs Your Finance Is In A Mess

So, we are facing an economy crisis and very likely this crisis has created havoc to your daily life. Even though the crisis is out there breathing down our neck, some people continue to overindulge and fail to cut down on their expenses. Overspending can put one in a bad debt and mess up both their finances and their life.

To find out whether you are losing your head to this crisis, check out the 5 signs you should watch out.

financemess thumb 5 Signs Your Finance Is In A Mess

1. Your monthly expenses is higher than your income

Earning $100 and spending $101 is a direct ticket to debt. If you don’t pay attention to your expenditure and the stuff you are splurging on, you are living dangerously close to the edge – the edge of falling into debt. This is a clear sign you can’t handle your personal finance and I would recommend you start learning about handling your finance before it is too late.

2. You are always late for your bill payments

Your bills were due 3 days ago, and you couldn’t afford to payoff the bill because your paycheck has not arrived. In short, you are living from paycheck to paycheck. The danger here is, if your job is taken away from you, you will be force into debt because there is no money to pay your bills anymore. In this kind of market condition, anything is possible, including losing your job. This is a sign to show you that you have not done a proper financial planning. As the saying goes, fail to plan, plan to fail.

3. You overcharged your credit card

You are making a payment for a new pair of shoes in a retail shop and cashier in the shop gently says, “Your credit card is not working properly, would you like to make the payment using another card or by cash?” To translate that, she is actually saying, “You have exceeded your credit card limit, do you really have money to pay?” Maxing out your credit card is also another sign you are overspending. The credit limit of your credit card is usually calculated based on the amount you can afford to pay. Exceed that limit, and likely you wouldn’t be able to payoff the whole thing in that month.

4. You do not like to read your credit card statements

Your monthly credit card statement has just arrived, after taking a glance at the minimum amount and due date, you torn it apart and threw it into the waste paper bin. You hate to see these statements because they just remind you that you are in deep debt. Running away from financial responsibility is another sign your finance is in a mess.

5. You loved receiving promotion calls

Many people find them a nuisance, but you like talking to these sales representatives that are offering you the latest balance transfer promotion deals. Again, you are running away from financial responsibility. Transferring your debts from one place to another does not solve your financial misery. You have to start learning how to deal with them and plan your escape route from debts. Free yourself from debts, not hide from them.

This is an article from The Brandless Blog.

Last 5 posts by Rendell

January 4, 2009 · Filed Under Personal Finance

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