Debt? Am I in Trouble?

by : Erine Adams

Finding yourself not sleeping well? Stomach hurts and can't concentrate? Believe it or not these are stress signals. What are you thinking about? Money? The realization that you have found yourself in real financial trouble can and will manifest itself in horrible physical reactions, not to mention the grim reality that there is a lot of work ahead of you that involves, lifestyle changes, budgeting, embarrassing phone calls, and reaching the point where you absolutely must make changes. You are not alone, please, realize that this very moment can be the beginning of fixing the problems with your debt. You probably didn't get into debt overnight and you probably won't be able to get out of debt any faster.

How do I know if I am in real financial trouble?

Here are some red flags that are tell tale signs that you are in debt deep.

1. Are you spending more than you are bringing home?
2. Is it a luck of the draw for who is going to be paid next?
3. Are you putting your bills ahead of your basic needs?
4. Are you broke before the next payday?
5. Do you frequently find yourself selling your personal items in order to just "get by"?

If you answered yes to any of these you indeed are on the road to a debt snowball that will lead to financial ruin. Its time to stop now! Your debt problems are only going to get better when you accept the situation and face the issues head on. Before you become more distraught, please realize that you deserve to work toward a debt free life and it is all possible. Every action you take, every effort and small change will bring you back on the road toward debt relief. Accept that the situation exists and that the world is not going to end, it may feel like it right now but there is plenty of help available you just have to look for it.

What will people think?

Who cares! I would bet my next paycheck that if you start talking to people about your situation they will have been met with financial challenges more than once in their lifetime and will probably have great advice of what worked for them. You may also find that those you confide in are in the same boat. I know that misery loves company but when it comes to your financial situation, think positive thoughts, you are already taking steps toward improving your debt issues.

Where do I start?

1. Assess all of your debt. List them all. Make notes of what is due, what is late, and what you have coming.
2. Call your creditors, they would rather work with you on payment arrangements than send you to collections or worse yet, have you file bankruptcy. Collections and write-offs are a huge expense for companies that offer credit.
3. Keep a positive outlook. There is an end to the torture. Debt relief comes with work and commitment but it does come.
4. Don't procrastinate, if you speak to a creditor and they are rude or demeaning, remind them that you are calling NOW. That you want to make things right and take care of your bad debt.
5. Be educated and informed. It is imperative that if you enter into any programs that you are sure they are reliable and reputable. Make your internet work for you.

Hopefully you have decided to stop the debt snowball you have been rolling. Continue to read, be honest, and work hard to make the changes it will take to reach your goals.