Debt problems

What are the signs of debt problems? I mean, how do you know you have too much debt?

Here they are:

● You pay your bills but there’s nothing left over.

● You have no emergency fund. It should be a three-month salary cushion.

● Your disposable income has dwindled.

● You have more than two major credit cards with outstanding balances.

● You use credit cards for items you previously purchased with cash.

● You can only make minimum payments on your credit cards.

● You take cash advances to pay other cards or bills.

There is a big importance of paying more than the minimum payment each month:

If you make a 2% minimum payment of 40USD each month on a $2000 balance at an annual percentage rate of 18.14%, it will take you 94 months to pay off your debt. When doubling, the number of payments drops to 32 months.

As a final thought, accumulating debt to live above means is never wise.

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