Most people have some form of debt – a credit card, mortgage or loan. But at what point should you start worrying about the amount of debt that you have? If you feel that you are ‘just’ managing each month, you probably need to reassess your finances. With the New Year coming up, and with the expense of Christmas just passed, now is a fantastic time to overhaul your finances if you are having problems.

The most common warning signs that you need to try and get a grip on your finances are:

- You are scared of opening letters from the bank.
- You don’t open bills immediately, and tend to tuck them away and ‘forget’ about them.
- You get a lot of reminders and red bills.
- More than 20% of your take-home pay is eaten up by paying your debts each month.
- You are taking out loans to pay for existing debts.
- You can only ever afford to pay the minimum amounts on your credit cards each month.
- You are unable to save anything each month.
- You use your credit cards for day to day purchases and are unable to pay the full amount each month.

If you find that you meet any of the above criteria, it is imperative to look into your finances as soon as you can and start to get them sorted out. If you are unsure as to your next step, click here to see a diagram explaining which debt management option would be best for you.

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