If you’re like most people, you might say that your debt situation is “okay.” But if you genuinely want to solve your problems and get out of debt for good, it’s essential to understand when you’ve crossed that line into too much debt.
In this article, I will talk about how to tell if your debt is out of control. Hopefully, this will help you avoid financial problems due to your poor spending habits.

1. You don’t know how much you owe

Hiding or not talking about your debt will not make it go away. In fact, if you haven’t even been able to pull out all your statements and add up how much you owe, it may be a sign that you know you have more debt than you can handle.

2. Your salary does not belong to you

If payday arrives and you get stressed instead of getting excited, you are out of control because you allocate practically all your income to pay your debts. It’s time to seek help and create a plan to get out of debt as quickly as possible.

3. You can only pay the minimum amount of your credit card

This is a classic. Some do it out of confusion, others out of ignorance. But if you are paying the minimum monthly because that is the only thing your portfolio allows you, you have exceeded the healthy amount of debt. In other words, if your credit card bills are in the thousands of dollars, but all you can afford is making the minimum payments each month, then it might be time to look at ways to reduce your debt.

4. You Have No Savings or Retirement Savings

Another sign that your debt may be out of control is if you have no savings or retirement savings. For example, suppose you are trying to save money, but it seems like every time you get some money saved up, something comes up with the car, or something else happens where you need money right away. In that case, this could be another sign of trouble with your financial situation overall. It shows that when there is an emergency expense, there is nothing left over to handle it.

5. Problems at home

This point relates to how debt impacts you. Consequently, you will lose control and have a hard time handling your work, family, and social lives. People become more intolerable and sensitive, and that feeling of peace and tranquility simply does not exist. You are out of control.

6. Withdraw cash from your credit card

When you are short of cash, it is easy to go to an ATM to obtain physical money through your credit card. This might seem like a convenient idea for an emergency, but it’s not something you should do every time you need money. A cash advance is not the best way to borrow money if you want to avoid extra credit card fees. (See also: 4 Reasons Why You Should Avoid Credit Card Cash Advances).

7. Pay off debts with more debts

Finally, this is perhaps the most dangerous sign that your debt is out of control. When you reach this point, you know your debt is beyond control, and anything you do is delaying the inevitable: a total collapse.
Despite what may seem like a solution, borrowing more money will not solve your financial problem. Instead, it will add to your debt.
Whenever debts are paid with more debts, a vicious circle is created in which more obligations are assumed, and new financial commitments are created to the detriment of the entire financial structure.

In conclusion

Debt is a huge part of modern life, whether you’re graduating college or buying your first home. But there is a difference between having too much debt and being out of control. Knowing what these warning signs mean is vital, so you don’t get yourself out of control with your debts.