Massive credit card spending can equal trouble!Identifying serious financial problems and debt can be a difficult task for some unaware individuals. Some people never adjusted to cut in pay or the increase in the cost of living. Many people are not aware of the problem until it is too late. While some people are just in denial about their spending. Some younger people are used to having family that covered their expenses, then go out into the world with no clue. This article will discuss some serious issues and warnings that you could be on your way to financial ruins, or worst, already there. The first step to turning your finances around is realizing you have a problem, then you must take drastic action to change it.

Identifying Serious Financial Problems and Debt

  • Applying for a number of different credit cards because your other ones are close to their limits.
  • Paying bills late, and having to continually pay fees. Paying only the minimum due, because you need every dime possible to make it until your next paycheck.
  • Having all or next to all of your paycheck spent before it even arrives.
  • Borrowing from Peter to pay Paul. Tightening, using one checking account to write checks to cover the other checking account, and repeating until you can fully cover the check. Getting cash advances, payday advances, or using an actual credit card to pay another credit card or loan payment. Constantly having to pay overdraft fees to financial institutions is another sign of a major problem.
  • Completing wiping out your savings to pay bills, or not being able to save any money what so ever. Your current financial debt never goes down or keeps increasing, instead of declining. Never getting financially ahead.
  • Having to stay at home, while your friends go to the movies, parties or shopping, because you simply never have money, ever. Buying groceries or simple items and necessities on credit cards, very often. Often, not because you are reaping the credit card reward points, because you honestly can't afford the items. Financial problems are no fun at all.
  • The worst sign of financial disaster, in my opinion is when you have to buy something on credit, sell it for much less than the item was worth. This giving you cash to pay another credit card bill or something more important, like an electric, grocery or water bill.

Take it from someone who knows hands on. Having horrible credit can hurt you in more ways than just financially. Many companies will not hire you for a job, car insurance rates can be raised, and it can keep you from being approved for a lease for a house or apartment. The first step in the right direction is by identifying serious financial problems and debt.