Warning Signs

Credit can quickly get out of control. Understanding the early warning signs can help you take action sooner to lower your balances before your debts accumulate again.

debt treadmill

If any of these signs apply to you, take corrective action right away:

  • Inability to pay non-installment credit balances in full at the end of every month.
  • Spending more than 15% of monthly net income on consumer debt repayment.
  • Making only minimum payments on credit cards.
  • Difficulty paying monthly living expenses regularly and on time.
  • Using credit for everyday expenses.
  • Using overdraft almost every month.
  • Arguing about money with your family.
  • Not sure how much in total is owed to creditors.
  • Collectors are calling for payment.
  • Debt consolidation is being considered.
  • Further credit on cards after debt consolidation.
  • Charging more each month than is being paid.
  • Reaching or over borrowing limit on credit cards, overdrafts and lines of credit.
  • Blaming others for financial and other problems.
  • Not being able to trust other people.
  • Refusing to acknowledge financial and related problems.
  • Spending impulsively.
  • Resentful of help.
  • Savings are exhausted.
  • Purchases and debts are hidden from family members.
  • Post-dating cheques used for payments.
  • Installment payments last longer than the products.
  • Using cash advances from one credit card to pay down another credit card.
  • Shopping when stressed, angry or depressed.
  • Considering payday loans