Six Warning Signs of a Financial Problem
The Federal Deposit Insurance Corporation offers the following guidelines to evaluate whether you are facing significant financial difficulties.
- Loan payments, excluding mortgages, but including credit card charges, take up more than 20% of your monthly net income.
- You are close to, or surpass, your credit card limit.
- You must borrow to make payments on existing loans.
- You only pay the minimum amount on your bill.
- Lack of money is forcing you to pay bills late or postpone doctor's visits.
- You must work overtime, or take a second job, to cover basic living expenses.