8 Signs That You Have a Debt Problem (Part 2)

This is (Part 2) of 8 Signs That You Have a Debt Problem. In this session, I’m going to cover some clear cut signs of an impeding debt problem that are often overlooked and misinterpreted. When you see these signs, take action, because you may not receive further advance warnings...

  

Debt Problem Sign #5: You Start Shuffling Debt
Shuffling debt has become so commonplace and so in vogue, that the masses don’t realize; this is a clear and cut tell tale sign that they have a debt problem. What does it mean to shuffle debts?

Debt Shuffle: (a) To consolidate credit card debt, mix, or interchange the positions of debt, (i.e., credit card debt becomes a home loan. (b) To merge (credit cards together) so as to lower overall interest rates. (c) An evasive trick. (d) To move debt about from one creditor to another creditor; to shift debt:

 
Debt Shuffling Never Ends Your Debt Problem - It Just Prolongs It!
When it comes to shuffling debt, all a person is doing is, (for an example) taking six different credit cards and shuffling them into one. The debt problem has not gone away! Why is this an evasive trick? Because people are attempting to evade the high interest rates, but most people don’t read the small print entitled, “credit card polices.” All credit card companies have provisions to change interest rates “at will,” based upon your payment history, credit score and other factors, some beyond your control.

That means they could wipe out that teaser 0% interest rate at the blink of an eye. In the final analysis, the majority people who shuffle debt, eventually find themselves right back in the position they were attempting to avoid. 

Debt Problem Sign #6: You Resort To Using Payday Loans/Title Loans
I simply DO NOT believe in using Pay Day Loans or Title Loans. The horror stories of people who had their wages garnished and cars repossessed after they went to one of these bottom feeder creditors is endless. These types of loan companies don’t solve your issues; they create a greater debt problem. I’ll never forget one couple that went to a Title Loan Company and borrowed $800.00 on a 2007 Ford F-150.

They made a partial payment and when the next payment came due, they didn’t have the money and their truck got repossessed almost immediately. It had a Kelly Blue Book value of $9015.00. Essentially, that company bought that vehicle for under a $1000.00. Prior to the Title loan, that couple was in over their heads in credit card debt and needed an additional $625.00 to meet their bills. With no place to turn, they turned to these bottom feeders and got burned.

Debt Problem Sign #7: Creditors and Debt Collectors are Contacting You
Once a person starts missing payments or making partial payments, they automatically start receiving calls from creditors. If they get way behind, (120 to 180 days) the account is usually turned over to a debt collection agency and they’ll eventually hear from debt collectors. The moment a person starts receiving those calls and collection letters, its time to be proactive! Do what it takes to address this matter A.S.A.P.; get credit counseling, get debt counseling and examine the debt solution options.

Debt Problem Sign #8: Debt Is Causing You To Worry
I had a couple let me listen to a recorded message left by a debt collector attempting to collect on a Visa Credit Card. They had an overdue balance of $8200.00. That collector’s message was laced with put downs, insults, disparaging remarks and then a demand for a payment OR ELSE! He was so obnoxious, the man’s wife was riveted to the very core; she couldn’t sleep and could barely eat. When debt causes you to worry, loose sleep, loose your appetite, become depressed or otherwise negatively affect your well being, it is past time to take action.

A debt problem can be all pervasive, impacting your relationships; psyche, and even your love life. It can lead to depression, despondency and irrational behavior. By being proactive and addressing the issue head-on, you put yourself back in the driver’s seat.

William Phillips brings a degree in economics and an unwavering passion to help fellow Americans come from under the clutches of debt. He believes that with the right debt advice or debt counseling, anyone can recover from the stresses of being overwhelmed with credit card bills and other debts.

Source: http://www.DebtErasure.com