5 signs before being in debt you need to know before 2023

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If you are utilizing credits or loans from any facility, you need to be mindful of your current situation now and how the recurring payments will affect your finance in the future. It is often that you would be carried away with what you cannot see in real life and that is where overspending will occur.

Here are 5 signs you could be falling into debt and with 2023 fast approaching, you will need to have this basic knowledge to avoid being in debt.

Unmanaged Credit Card bills

A typical process of paying with your card now and settling it later. While it allows you to not bring a lot of cash around and at the same time earn those cashback and rewards, you still need to keep an eye on the bill that comes at the end of the month. The best way is to definitely clear the outstanding before the next repayment cycle. Most to most, pay more than the suggested minimum payment to avoid a hefty recurring interest that balloons the total outstanding owed.

Frequenting loans

Though loans could relatively be easy to get, they should not be the go-to for almost everything. When you do so, it is a clear sign you are spending over what you could afford and that is a big red flag. When you do utilize the loan programs, it should aim to increase the value of your living. The sole purpose is not to live lavishly but it has to have a purpose. Take for example house loans or study loans. Though some might consider such loans as a negative value as is depreciates value, one must seek a professional to see where the purchase is going or some might deem it as an investment purpose.

Spend within your needs

With the hype of Buy Now Pay Later or even utilizing credits without monitoring your spending, it is easy to go beyond how much you can afford. Despite any festive season coming or celebrating an occasion, one should always plan for the financial activity that he or she is partaking in. For every small installment made every month, one should know that once a payment is missed, it will cause the total outstanding to snowball. When this happens, it will always be hard to keep up, especially when there is no room to cater for additional spending.


Comes this part that many might have overlooked. Budget is to have certain portions of your income to be strategically divided into your recurring finance activity based on previous months. Doing so, this amount and percentage has to be followed strictly, and not doing so will result in overspending and ‘eating’ up into other allocated amounts. Planning ahead will definitely benefit you. Though at times you feel that you are quite tight, continue following it as it ensures you are on track when it comes to spending.

Despite our best efforts there is a possibility that you may slip into a debt trap. It is, however, important to understand that if the problem becomes unmanageable, it may be best to get professional help. There are a number of companies that deal with getting your finances in order and it would make sense to get a good analyst to help you out.

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