Personal finance

By Cathy

At what point do you realize that your personal finances are in trouble?

I could come up with at least ten indicators but today we look at these:

When you buy things on credit that you used to buy with cash

Credit card allows you to buy items even though you may not have money to pay for them right then if not checked may lead you way deep into personal financial trouble.

Spending more than you earn indicates something is wrong

For instance taking money coming in as payment for work done less money you are spending for basic needs say bills, food, accommodation and this gives you  no balance but instead you need more money to fit your expenses. (Income minus expenses = deficit) then in personal financial trouble.

You borrow from one source to pay off another debt

At one point I had some personal financial trouble I could borrow from one source to pay a long outstanding debt this was a temporary solution since one debt was paid but was increasing my debt. To be honest this was some kind of cycle I knew I was in  deep personal financial trouble so what was I going to do about it.

You know when all this is going on you have no peace you will always be worried about how you will make ends meet. There are so many what if's at this point. What if the bank takes my car, house!! What if am taken to jail?

Don't panic there solutions to all these we shall look at these next time.