DEBT-PREDICAMENT
Financial –Crisis and Credit-card debts- The warning signals.

1. Refusal on credit or a credit line escalation-When you are declined credit; it’s time for a reality check on your financial status. Creditors are smart investors. During decision-making, they rely on the information collected from various credit agencies to educate themselves on your true credit worthiness. This is based on FICO or Beacon Score and if there is a refusal, it implies that they are aware of your financially unstable state and your finances are stretched to its limit or beyond.
   
   
2. Your savings accounts are not in order and you have exhausted your savings for a luxurious lifestyle- Savings are support-systems that we need during a crisis, unexpected emergencies and unforeseen circumstances. Additional support from your financial resources is required at such times. It can be a matter of concern if you have not saved consistently per week or on monthly basis. If savings are exhausted to live beyond one’s means and to keep up a luxurious lifestyle then a financial reassessment and budget-planning is diligently and definitely required.
   
   
3. Minimum payment on all revolving accounts and credit card debts-It would be in your best interest to try and pay off the debts on credit card and other charges revolving around it totally month by month. Most people find this impossible to do. So it is recommended that if you have enough funds, then pay off more than minimum or slightly more than that. If you aren’t doing so, it indicates that you are over-spending and an analysis of your budget is immediately needed. Adopting a simpler lifestyle and making adjustments are important to meet unexpected expenses or else your finances will fizzle out.
   
   
4. Bills on credit cards are approximately similar each month-This is sign that you indeed are using your credit card to pay for your day to day expenses, thus maintaining a lifestyle beyond your reach. Hence, at this time, run a check on the debt on the credit card, and then start budget-building.
   
   
5. Your cards have crossed their credit limit or your credit card purchase has been declined- Do not deny it, answer in the affirmative if it is true as this significantly indicates that you have reached the limit or probably even overextended. Get a tight grip on your financial matters and make a master plan for prevention of further damage. These state of affairs could have been steered clear of with prior awareness of your financial situation and by recognizing how high the balances were. On the basis of your income, outstanding debt and history of credit, the credit limit is determined by your creditors. Proximity to this limit or being at this limit spells concern unless some tough financial resolutions are made.
   
   
6. You are following the “Pay Check” payment mode-You are in precarious financial circumstances if you issue checks hoping to have sufficient funds in your account at the time your checks are ready to be encashed. Bouncing checks means you are in the red. This approach can be disastrous as this is heart ruling the head.
   
   
7. Concealing uncontrolled debts from your family members-Self denial stems out of the truth that you do not acknowledge the problem and do not share it with your family members. You screen your erratic spending pattern from your near and dear ones because you are feeling guilty about it. This is the right time to confide in someone close else seek professional assistance.
   
   
8. Trouble doubles when creditors call- Dodging calls from creditors would not make your problem disappear. Face the problem head-on. Most of the creditors would be reluctant to compromise or give concessions; hence the need for professional services of a consumer credit counsel arises. This would pave way for you to be on top of these circumstances and thus become current on your accounts.
   
   
9. Your other bills are paid using cash advances, this is financial hara-kiri- Your earnings do not suffice to support your extravagant lifestyle, hence you swap bill payments with cash advances. This is detrimental to your already insecure financial situation. Hence, immediate financial analysis and planning would be necessary for which professional assistance might prove to be effective.
   
   
10. You refrain from summing up the outstanding debt amount or cannot account for the credit card debt every month- You have no answers to the expenditure incurred through your credit card and have no details of your total debt amount. Simply burying yourself in the soil would not rid you of the problem, it would only worsen. Reassessment of your spending structure and efficient debt repayment would be the only panacea in this hour of crisis.