So you are not ducking and diving and there are no bailiffs at your door but this does not mean that you are not in debt. It may just mean that you do not recognize that you are in debt.
Here is how to tell that you are in debt
1. You Spend More than You earn
If month by month you are scrambling to cover un-paid bills it’s a sign of a deeper issues. Which could be that you don’t have enough money to sustain your lifestyle. It may also mean that you are not making enough money, may not be making money at all or that you are mismanaging the money you are making.
It can be as simple as that you are spending more than you make each month, because you defer payments. When you avoid paying cash for airtime, food, drinks and many other items that usually require cash you place yourself in debt. If you have the habit of borrowing money from friends, family, work or a money lender you are in debt.
Figure out how to survive on the income you make or increase your income because eventually you will run out of places to borrow money.
2. You Don’t Answer Your Phone
When you are avoiding certain calls and ignoring messages from people demanding or reminding you of a due payment. This is a sign that you are in debt. You may have the intention to pay but the creditor calls, reminder messages or even threats are a sure sign that you are in debt.
Not answering the phone will not change this and means your debts have become delinquent and probably unaffordable.
3. You Lie
You lie to yourself about what your real situation is and buy things that you clearly cannot afford. Probably because you want to keep up an appearance. And because you want to fit in. However, just because your friend has it and can afford it, does not mean that you should also have it and that you can afford it.
If you have several payments to make every month, you will eventually run out of money or run into debt. Which inevitably will lead you to hide your bad spending habits or to lie to your spouse, children and friends. And so every time you can’t be honest with your loved ones about your spending habits, you are getting into dangerous territory!
4. You have no savings
The absence of savings itself doesn’t always mean you have more debt than you can handle. It is when you are using your savings to pay off your debt or to make ends meet, that’s when you know there’s a problem. And without savings, life can be very hard and stressful.
The smallest surprise expense can lead to debt. This is why having some money set aside is important.
5. You Use Alcohol
Sometimes having drinks with friends is not always just having drinks with friends. Sometimes it can be an escape from the stress of holding debt. It is sometimes not a social thing but a way to avoid facing up to debt and by the way the high cost of these social outings may even have contributed to your debt.
Reduce on the alcohol evenings with friends and spend some time doing a self-audit. And more important…start using a budget.