by Sun Meilan

Created on: February 25, 2012

Struggling to keep control of personal debt appears to be a common occurrence in this day and age. Unfortunately, with the ‘I want it now’ culture that many people appear to have it embraced, it can be hard to accept that your spending habits need a complete overhaul. Don’t leave it until it’s too late to rectify the situation. Here are five signs that your personal debt is out of control.

You’re turning to payday loans for help

It can be easy to think that you will put off paying the odd bill for a month or two, when you have managed to put aside a bit of extra cash to pay for it. However, the chances are that if you can’t pay your bills now, you are even less likely to be able to do so in another couple of months. According to The Daily Mail, many people in the UK, panicking when they realise bills are way overdue and need to be paid, are turning to payday loan companies. These include QuickQuid and Wonga, which are regularly being advertised on television at the moment. The UK Office of Fair Trading is investigating claims that such companies are giving out loans without researching the borrowers’ ability to pay. As a result, borrowers are getting deeper and deeper into debt. If you are one of the many people turning to payday loans to pay your bills, stop before you get sucked in. 

A large chunk of your income goes on your home

Investopedia.com suggests that if more than 28% goes on rent, mortgage, property taxes and insurance, you may be living beyond your means. Conservative lenders believe that paying out 28% or less on your home, then allows you enough disposable income to have a reasonable standard of living and to put some into a savings account too. A little bit more than 28% may not be a big deal, but if you are spending 50% or more, you could really be in trouble, because you will struggle to pay your bills, let alone have income left over for personal enjoyment and savings. If you are already in debt, you won’t be able to work your way out of it unless you move; if you aren’t yet in debt, you probably will be soon. Consider downsizing, or moving to a cheaper area, as soon as possible. 

You can’t stop impulse buying

Everyone impulse buys occasionally and although it shouldn’t be encouraged, especially when the purchaser is in financial difficulty, it usually doesn’t make too much difference. However, if impulse buying becomes a regular thing, despite the fact you

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