Are You Addicted to Debt?
By Francine L. HuffMortgage Credit Problems Columnist
You've dug yourself into a deep hole of debt, but just can't seem to end your love affair with plastic. Could you be addicted to debt? Here are some warning signs that could indicate your spending habits are out of control.
Spending More Than You Earn
The typical American family spends about 5% of its monthly income to pay credit card balances, according to the Federal Reserve. If you're monthly income is never enough to cover your expenses, then you're living above your means. It's time to get your spending in check by cutting out impulse purchases. You may want to consider a debt consolidation loan to get your bills under control. However, keep in mind that a debt consolidation loan will only help you if you quit using your credit cards.Dodging Creditors
Are you afraid to answer your phone? Do you make your children lie to creditors when they call your home? If you're having trouble paying bills don't hide from creditors. You need to speak with them to try and work out a payment plan that works. Many creditors would rather work with you to get some payment rather than none at all.Too Many Credit Accounts
Do you apply for credit cards every time a store offers you an extra 20% off for opening a new account? If your wallet is bulging with credit cards you're not alone. About 10% of consumers have more than 10 credit cards, according to Experian. Pass up credit offers to avoid taking on new debts.Stressed Out
Having bad credit can take a toll on your health. If you're feeling stressed and losing sleep because of your money problems it's time to make some changes in your spending habits. Working out a plan to pay down loans and credit cards will go a long way to improving your health and tense relations with your spouse or other family members.About the Author
Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.
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