Like most people, you may also be living on the edge, like ignoring all the warning signs that show you are in financial trouble. You feel the stress that each month-end and payday come with as you have to pay out all kinds of loans. Lendgreen offer financial advice to their clients on how to manage their loans and credits effectively. You may also fall into this category. Here are some pointers to explain that you may be overspending.
- You have no savings
The red flag about this situation is that you either you have no savings in your account, or you are below the recommended emergency cover amount of $2,000. The problem with having no savings in your account is that you do not get to pay yourself. First, you’re not concerned with your long-term financial solution either. Having installment loans should not be associated with having no savings.
You can solve this problem by developing a budget and also saving some money each month so that you can build your emergency fund.
- You have no clue the amount of money in your bank account
The red flag here is that you probably use your debit card without any consideration. The problem with this practice is that you are wasting huge sums of money in the process that you would have rather used deducing your debts.
The solution to this problem that you take your time to always check your balances with your bank on a regular basis.
- Pay your monthly expenses using your credit card
The red flag with this practice is that you are never certain the amount of money you always have in your bank account that you will need to pay for your groceries, or even other credit card debts if you are using your credit card. The problem with this is that you are probably adding to your current debt. You’re probably not even living within your current means.
The solution to this problem is to try and handle all your spending. You best review your budget and cut back on the things you can do without.
- Avoiding opening bills and card statements
The red flag here is you have got a stack of unopened emails in your mailbox. The problem with this practice is that you will be drowning in more debt.
You can solve this situation by answering your phone no matter who it is you owe money to and reading your emails too to explain your situation to your debtors.
- Continuing to make purchases on your credit card
The red flag with this situation is that you are using rationalizations and justifications as excuses to add to your debts. The problem with this situation is that you are already resisting change that you need to have.
You can work to solve this problem by avoiding any temptations that you come across by cutting back on your expenses.
- It will be for just this once
Here, the red flag is that you are probably making too many financial mistakes like using your cash advance and convincing yourself that you are doing it for just that one time. The problem here is that you are likely going to be a repeat offender with this habit.
The solution hers is not to do it at all.
- Using one debt to pay off another.
The red flag is that you’re using one of your credit card debt balances to pay off another debt. The problem with this situation is that you are living way beyond what you can afford.
You can solve this by organizing all of your loan debt payments with a strong action plan.
- Asking family and friends for money
The red flag here is that you’re probably already too much in debt that you can’t afford to repay your loan. The problem with this situation is that you have started to use other people to get you out of your financial troubles.
The solution here is that you can ask for your family and friends to help you achieve your financial freedom instead of lending you money.