A quick test, to see if you have a money problem, is to ask yourself how much you owe. If you don’t know how much money you owe your creditors, off the top of your head, then you are on your way to serious financial issues.
Whether you have a money problem, or just seriously bad luck, taking the time to review your spending habits can help.
Some typical habits found in people who have an issue with managing their cash is hiding items they buy from their spouse and/or hiding the monthly credit card bills from them also. Is this a habit of yours?
It could be you ignore calls from creditors, you frequently overdraft your bank account, your credit score is under 700, or get cash advances from your credit card. Are one of these a bad habit of yours?
If you are in serious trouble, then you might be afraid to see how much you owe. Sit down and add up your debts. Are you surprised by the amount?
Now add up the monthly interest charges on each credit card statement, car loan, or other debt (not including your mortgage). Does this amount make you open your eyes in shock?
Add up the monthly payments on these same accounts. Do you realize how much you are paying out each month on these debts? not to mention all of the interest owed.
This writing isn’t to make you feel ashamed. It is only to make you aware of your financial situation.
Take a few minutes to sit down and list your income, debts, and figure out what you can afford to pay, and what you can’t. This is called a budget. It only needs to take 30 minutes for you to see how things are, what shape you are in, and whether you need to take drastic action with a credit repair company.