How do I know if I have too much debt?

Here are 7 early warning signs. If they sound like you, go seek professional assistance. The faster you act, the sooner your situation will improve and you’ll regain control of your finances.

You’re borrowing money to pay for your essentials.

For example, if you’re forced to use your credit card to pay for groceries or your medication because you don’t have enough available money.

Or, as another example, you ask friends to lend you money to pay your rent.

You always pay your rent or mortgage late.

Although these payments come as no surprise, you still always pay on the due date or even after. Sometimes you also miss one or more payments.

Your creditors are harassing you.

You receive endless calls from creditors and debt collection agencies. You may even be so fearful of your creditors contacting you that you sometimes avoid answering the phone or opening your mail.

You have to choose what bills to pay this month.

You may find yourself tightening your belt with your grocery shopping to be able to pay your electricity bill. Or you may have to choose between paying your electricity bill or your phone bill this month.

You pay off your credit cards with other credit cards.

You only ever pay the required minimum. You might also transfer the balance of one card to another without being able to pay it back at all. If this sounds like you, be careful, as doing this can damage your credit score.

You never manage to save.

In fact, your bank account is at zero by the time you receive your pay cheque. You have nothing left over by the time you pay your bills. There’s no way for you to put money aside.

Your cheques sometimes bounce.

This could include, for example, the pre-authorized payment on your car insurance being refused due to a lack of funds in your account at the end of the month. Be careful: in addition to having to deal with the problems this may cause, you may have to pay your bank a penalty fee of up to $45.