In the perfect world where financial difficulty is a thing of the past, you would have all your bills paid promptly and would never need to use loans since money would be there each time you require it. Living in an economic utopia is a reality for some individuals in Singapore, yet for most dealing with obligations and financial needs – loans, bills, family etc- and yet have time for fun is a tough balancing act.
Every person in Singapore is concerned about money. In such economic tough times, getting into financial difficulties seems to be inevitable. Even then financial trouble does not just happen out of the blues. But by generally having bad financial practices and habits, it can be quite hard for an individual to see the red flag signs that you could be drifting into financial thin ice.
Although most people would like to repay all their debt, make more money and also adopt healthy financial habits, it could be that they don’t know yet that they are headed for a financial snag. Below are some warning signs that show you could be in deep trouble, financially.
You Are Dependent On Someone Else To Cope
If you are having a good time enjoying your life, does not mean it is the same for other individuals in your life. Very many people among us are dependent on others to help them cope with their lifestyles. And this is not in reference to those people who are under the support of their parents, seeing that Singapore is one place in which family wealth remains in the family.
But when you are constantly borrowing cash from your friends and ignoring their pleas for you to repay it, or you rely on your dates to fund your lifestyle, it may be a time you did some serious soul-searching. Because once people have wised up and begin to stay away from you, it will be a rude awakening for you and picking up the pieces by yourself after everyone has left won’t be a walk in the park.
You also need to look at a way that you can be able to handle your bill with minimal assistance from anyone. You may consider taking a second job to supplement your pay if need be.
You Frequently Make Use Of Personal Loans And Payday Loans
Payday loans and personal loans have their uses and time when they are needed. However, when you find yourself constantly taking out these loan types way too often, it can only mean your financial situation seems grim. Personal loans are among the most expensive methods of borrowing money, they are also an indication that your salary is too low to cover all your monthly expenses.
You can overlook having taken any of these loans once or twice for an emergency and a one-time expense, but when your moneylender starts greeting you like you were an old friend each time you appear, it may be the time you took some drastic measures and did an analysis on your financial standing. You need to look at option that will help you turn around your finances. And this you can do by knowing what your financial status is like and areas that need some of your attention.
You Hold A Revolving Outstanding Credit On Your Cards
Wise spenders do not use their credit cards for the reason that they don’t have the money to pay up. They make use credit cards for purchases of things they know they are able to afford but only do so for them to build up their credit score and acquire rebates, air points, and rewards. This simply means that having a revolving credit balance on a credit card, regardless of how small, may not be smart.
You need to be paying off all your credit card expenses in full for every month. When you are holding a revolving balance on your card make a point to repay it immediately. You need to consider the high interests it attracts, and the high possibility of the debt accumulating that it will be hard for you to manage. This will affect your credit rating as well as get into to the endless pit of debt. When you are not able to pay it off, your debt will simply spiral out of your control.
You Are Failing To Pay Your Loans
When you already have an existing loan for a home loan or even a car loan yet you are finding it difficult to pay your monthly instalments, then you clearly are in a serious financial emergency. In such a situation you risk losing your property and even being declared bankrupt. If you have found yourself having to take out a loan amount to help you pay off a personal loan you owe, it may be the right time to consider very carefully on whether it would be the right move for you to sell your property or car, and more so if you still a lot of years left to pay on your home loan.
Failing to pay on your personal loans or even your credit card bills is very serious. These are some of the issues that get people to end up being bankrupt. Since you have diligently avoided picking the call from your money lender is not a guarantee that you have successfully escaped the debt collectors. This is because the next thing you will realize is someone knocking on the door on the authority of the law.
Having bad financial practices and habits can make it quite hard for an individual to see the red flags to show that you could be drifting into a financial snag. Many people are dependent on others to help them cope with their lifestyles. This is a major red flag because you aren’t able to handle any of your bills.
Constant taking out of loan can only mean your financial situation seems grim. And holding revolving credit balance on a credit card, regardless of how small, does not make the situation any better. It is important that you take time to evaluate your finances to help you come up with a working solution.