5 Signs You Could Be Over-Indebted
5 Signs You Could Be Over-Indebted
Managing your finances can be a challenge, especially when you have multiple debts to pay off. But how do you know when you've taken on too much debt? Here are five signs that you could be over-indebted:
1. Borrowing money to pay off other debts: If you're taking out new loans or using credit cards to pay off existing debts, you're likely in over your head. This can create a vicious cycle of debt that's difficult to break.
2. Using credit cards and overdraft facilities for basic necessities: If you're using credit cards or overdraft facilities to pay for basic necessities like food or bills, it's a clear sign that you're struggling financially.
3. Skipping payments: If you're skipping payments on some accounts so you can pay others, it's a sign that you're struggling to make ends meet. This can lead to late fees, higher interest rates, and damage to your credit score.
4. Receiving letters of demand and summonses: If you're receiving letters of demand or summonses from credit providers or lawyers, it's a clear sign that you're behind on your payments. This can lead to legal action and even more debt.
5. Judgments granted against you: If a court has granted a judgment against you for unpaid debts, it's a sign that you're in serious financial trouble. This can lead to wage garnishment, property liens, and other legal actions.
If you're experiencing any of these signs, it's important to take action to address your debt. This could include creating a budget, negotiating with creditors, or even seeking professional help from a financial counselor or debt relief service.
Remember, over-indebtedness can happen to anyone, but it's important to take control of your finances before they spiral out of control.
​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice.
Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.
