by Lucy May

Created on: March 30, 2009   Last Updated: March 31, 2009

Debt, another nasty little four letter word that we are all so scared of! It's very similar to being overweight, without noticing the total amount, it grows so fast on you and then takes ages to trim off a little at a time.

As you travelled through your financial path you probably worked and lived as so many other people did. Buying now, intending to pay later. After all you were earning a good salary, yes? And along the way, other banks and financial institutions offered you more cards, yes?

So now you are wondering how was it that the amount you now owe is so high. Unfortunately you are not alone; most consumers do not even see the signs, yet recognize them.

In the beginning it was so easy, you probably only had a couple of cards, the spending limit would have been set quite low to start you off. I assume you most likely paid the balance in full each month and felt quite proud of handling your responsibilities correctly. Then as time went on and you proved to be a trusted customer, the limits on your cards started to increase. Problem now was that you began to charge more each month, but were no longer clearing the full amount due on your statement.

Early warning signs arrive when you begin to sign up for additional cards, you start just paying the minimum required and sometimes a little extra off the balance, but does this gets recharged the following month? It is dangerous to charge more onto your card than you are paying off and of course do not forget those astronomical interest rates, they add up. When your expenditure becomes higher at certain times of the year for example: Christmas or Vacation time, do you begin to request a higher credit limit in order to borrow funds from one card to pay another?

Alarm bells should be ringing to tell you that you really must start to pay attention to your debt level. Are you fully aware of exactly how much you now owe on all of your cards combined? Hopefully you are managing to still pay the utility bills as they arrive. Can you increase your working hours to earn a little extra each month that you could use to help reduce your debt level or has this situation already arrived?

One of the most dangerous signs is when you start to hide those letters and bills from your family, this is a crucial stage. When it comes to the time for taking action and starting to cut running costs around the home, then your family must know what you are facing. They will help.

I trust by now you may have recognized some of the warning signs, and can adjust your spending and saving habits in time to avoid further problems. If your debt is spiralling out of control, now is the point where you must seek professional help. Counsellors are there to help you find solutions, no matter how big you think the situation has becomes, you can survive this.

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