Getting in debt is not an overnight process, and many people wonder how soon is too soon to start looking for debt consolidation options. There is no clear cut rule, but there are a few guidelines which can help you identify the exact moment when you should seek help for your financial situation. Find more information about debt consolidation loans.
These are a few situations when you should accept that you are accumulating debt and should seek debt consolidation advice as soon as possible.
1. Paying for daily expenses with the credit card
If you are already using your credit card to pay for groceries and utility bills, it is clear that you are on the track to max out our card, hurt your credit score and head for major debt accumulation in the near future. You have to stop and analyze how you spend your paycheck and do something about the situation.
2. Getting a new credit card when the others are maxed out
This is like leaping from the frying pan into the fire. As you fall behind with payments on older credit cards, new ones will have higher interest rates. Soon enough, you will be borrowing money from one bank to repay debt to another bank. This vicious cycle will continue until no bank will be willing to open a line of credit for you.
3. Writing checks for higher amounts than you currently have
If you resort to writing checks above your current balance in the hope of making a quick deposit before the check bounces back, then you are already making wrong choices, financially speaking. One single bounced check will affect your credit score worse than seeking debt consolidation and paying off your current debts. Drawing payment documents without coverage is a sure sign that you are no longer in control of your financial situation ( http://www.toptenreviews.com/money/debt/best-debt-consolidation-companies/ ).
4. Hiding purchases from family and friends
If you are hiding a new dress or pair of shoes, or lying about their prices, then you know that you do not really afford them. Compulsive shopping and the inability to resist buying an expensive item are slowly and steadily plunging you deeper into debt. On a larger scale, the same thing happens when you aim for a brand new car instead of a pre-owned one in good condition. The first fix to this solution is to cut up all your credit card and start looking for financial counseling.
These are just a few situation, or warning signs. If you identify yourself with any of them, then seeking debt consolidation options is the right choice to make right now.