Did you know that the average household has close to $10,000 in debt?  This is always an eye opener for many, because when you think you’re the only one on the block with debt, you’re not.  In fact, you’re average, and if you save money, you’re above average. 

No one wants to face debt, and yes, 99% of the time it’s because of your actions.  I know things such as medical expenses, and other things can cause it, but that’s not always the case.  Today, I want you to ask yourself these following questions and if you answer yes to any of them, you may need to step back and look at your financial situation.

Are any of your credit cards at their limit?

Check your recent credit card statements and look at the credit limit as well.  For instance, if you have a $2,000 credit limit, and the bill is for $1,900, that’s pretty darn close.  I would answer yes to this one.

How much of your income is going toward debt?

Each month, I want you to look at how much of your paycheck is going to all of your debts.  Is it more than 50%?  I’d say if anything is above 50%, I would answer yes to this question.

Are you late with your payments?

Do you miss a lot of payments?  Have you been late on some of your payments in the past few months?  If so, this is probably one of the biggest warning signs when it comes to debt.

If you lost your job today, how are you paying for things?

Let’s say that you lost your job today.  Do you have an emergency fund?  If not, you better start to save up at least 6-9 months worth of expenses, because you don’t want to rely on those credit cards.

Are more phone calls from collectors rather than friends/family?

This is a sad one yet if you get more phone calls from collectors, rather than family, you’re in a world of hurt.  This is another big sign that things have got out of control.

These five questions alone should give you a better idea on where you stand.  If you’re answering yes to a lot of these questions, you’re going to want to get either professional help or find out how to kill debt on your own.  There are many great resources on this blog alone that can help you fight debt.