SIGNS THAT YOU ARE ABOUT TO GET INTO DEBT

SIGNS THAT YOU ARE ABOUT TO GET INTO DEBT

SIGNS THAT YOU ARE ABOUT TO GET INTO DEBT

Are you looking for signs that predict that you’re about to get into debt?

‘Insufficient balance’ ‘Payment declined.’

These are some phrases that no one would like to see. After all, who enjoys being broke? However, it can happen when you are not careful with your spending or other factors.

Understandably, one cannot do without getting debit alerts while navigating life. One minute you have to pay for something, and the next minute, you’re still paying for another thing. It is one of the reasons why people say they do not want to grow up, as adulting is expensive.

Some people even lament how they would not want to leave their rooms if possible, as stepping outside is all about debit alerts. All these are not false as it is part of life. Thus, we always advise people to try their best to manage their funds.

We’ve also noticed that people engage in some harmful practices that make them broke even when they are not supposed to be. So we will share some things you shouldn’t do if you do not want to get into debt.

Yes, you can avoid getting indebted by being conscious of preventing these practices.

10 Things That Can Get You Indebted

In no particular order, below are some things you do that can get you indebted:

  1. Impulse spending: Are you the type of person who doesn’t have control over their spending? Do you love shopping? Are you the type to buy anything that catches their interest? If yes, it wouldn’t be surprising that you’ve gotten into debt, as impulse spending would help you finish your money.

Some people feel they can always buy anything they want because they have the money. However, if you are not careful with your spending, the money will finish in a blink, and you will become broke.

Understandably, you would be uncomfortable when you are broke. Thus, the following line of action would be borrowing money from people and becoming indebted. Is this the type of life you want to be living?

People say being indebted is stressful as you wouldn’t have peace of mind, and we agree. It could be that your creditors are always disturbing you for their money. There would be a nagging in your heart when you know you owe someone.

To avoid this stress, you need to cut down on impulse buying. Before you get anything, you should check if you can afford it and if you would still have money to take care of yourself after the purchase. If not, you can put that purchase on hold until some other time.  

  1. Money finishing before salary time: Do you need someone to tell you that you’re about to get indebted if your money finishes before salary time? For example, you work in a place where they pay salaries on the 25th of every month. However, by the 10th of the month, your salary is already gone, and you are barely surviving. It would be almost impossible for you not to look for a place or someone to borrow money and get into debt.

No matter how hard it may seem, you must try to ensure that you stop the habit of your money finishing before salary time. If it happens once, we can say that it is a mistake. But when it happens repeatedly, it has become a habit and needs to be stopped.

As you get your salary, you need to plan your life so that the money stays until you get your next paycheck. Else, how would you survive?

If some things consume your money that does not count as pressing needs, you need to cut down on them. Your goal should be ensuring that your cash comfortably takes you through the month. Else, it would defeat your reason for working.

 

  1. Difficulty paying bills: One minute, it seems like you have money, and the next minute you find it hard to sort your bills. Of course, many people can relate to this analogy as it happens to even the best of us. However, the fact that it happens doesn’t mean that it should be the norm. Once you realize that you’re finding it difficult to pay your bills, you need to reevaluate your spending, or you will get into debt.  

Imagine using your money for other things and the money finishes before you can pay your bills. Of course, you would feel sad when such happens. To avoid such embarrassment, you may get caught up in the web of borrowing money from others.

We need you to understand that you cannot run away from sorting bills as an adult. It could be your electricity bills, buying gas, sorting repairs, etc. All these are essential for you to have an enjoyable life. You would become sad and depressed when you find it hard to pay your bills; we do not want that to happen.

It would be best to always have money aside for sorting bills to avoid embarrassing situations.

 

  1. Living without a budget: You may find it hard to believe that some people live without a budget. Sadly, that is the reality, and there are more people than you may imagine doing this. Many of them argue and ask why there is a need to live within a budget.

The concept of having a budget is to ensure that you do not spend above your means. Therefore, when creating a budget, you are sure to structure it in a way that would be within your income. Consequently, it can serve as a guide to your way of living.

Aside from having a budget, you must also have self-control. It is one thing to have a budget and another to stick to the budget. Yes, drafting up a budget is nice, but it wouldn’t make any sense to have one if you are not going to stick to it.

The only time and reason you should live without a budget is if you are aiming for financial disaster. You are sure to act more responsibly if you work with your budget, and you may even have money still in your account when it’s time for the next salary. So if you have been living without a budget, it’s time to draft one!

  1. Living above your income: We have also noticed that some people live above their means. Sadly, we see that they try to compete with their friends, which leads to them spending more than they earn and eventually getting indebted.

You need to understand that you do not need to be in any competition with anyone in life. Everyone is running their races, and you do not need to impress anyone. So, once you notice that your friend group is making you spend above your income, it may be time to reevaluate that friend group.

There is no reason why you should be living above your means. But how do you expect to keep surviving? Of course, some people may say that they would borrow. But do you always want to be known as a debtor?

It is highly unreasonable to borrow money because you want to sustain a particular lifestyle that isn’t your actual reality. If you have been living above your income, it isn’t too late to rethink and retrace your steps. You should remember that life is best enjoyed when you are not indebted. Therefore, you should do everything to ensure you do not get into debt, including not living above your income.  

 

  1. Having the mindset that debt is part of life: We have come across people who firmly believe that getting into debt is a part of life. They say that one can’t live without borrowing them. Thus, they use this mindset in navigating life, leaving them indebted.

Now, we are not saying that their point of view is wrong. Yes, there are times when you might need to borrow money to sort things out urgently. However, it would be best if you did not think that borrowing or getting indebted is part of life. Once you begin to live with such a mindset, it makes you lazy, and you fall into the debt hole.

The goal isn’t to live your life for debt repayment alone. Instead, you should try your best to ensure you stay away from debts. But once you begin to live with that mindset, you are setting a trap for yourself as you would start to navigate towards debts and owing people, knowingly or unknowingly.

Anyone who wants you to stick with such a mindset doesn’t wish for your growth. If you continue having this mindset, you will remain stagnant, and your only goal will be to keep repaying loans. If you’ve always had such a mindset, it’s time to finetune it.

 

  1. You don’t track your spending /finances:  Did you know that some people do not like to check their account balances? It isn’t that they earn so much or are so rich. However, such people believe in spending without their account balance.

In an encounter with one of such persons, she said that checking her account balance leaves her tensed as she would always be calculating how much she has. Therefore, she prefers to live life on the edge without knowing. We further asked her what happens if she goes somewhere one day and tries to pay for something and her card declines due to insufficient funds. She shrugged, saying she would find a way to navigate it if she ever got to such a point.

Allow us to tell you that it is risky to live life this way. If you have a habit of not tracking your spending, you are sure to get into debt. You must reach out to people and borrow money if you ever get stranded. However, you could have avoided it if you had known your account balance and planned accordingly. You would know how to plan and budget your life within your means by tracking your spending and finances.

  1. You have unrealistic goals: It is one thing to be ambitious, but it is another to have unrealistic goals. In the name of being ambitious, some people set high standards for themselves, leaving them indebted.

For example, imagine someone who earns 70,000 naira monthly aiming to get a car of 3 million naira in the next three months. How would that be possible? Of course, such a goal is unrealistic. Such a person would put themselves under unnecessary pressure. And in a bid to prove a point, the person then borrows money and would be in the hole of having to repay their debt.

Another example is someone who earns 100,000 monthly but has a goal of saving 80,000. That isn’t even feasible in the present economy. How would that person survive on only 20,000 naira in that month? The person would have to budget for feeding, transportation, electricity, and phone bills. All these would exceed 20,000 naira, making it difficult for the person to survive. Therefore, the person has to use other means like borrowing to push through the month.

Setting unrealistic goals is sure to get you into debt. Thus, it is best to ensure that your goals are realistic.  

 

  1. You love to be the center of attention: People who love to be the center of attention do bizzare things to keep up with their lifestyle. Once you meet someone who loves to be the center of attention, you will notice that they are set on living what can be termed a fake life. Thus, it should not be surprising when you see that they borrow money to buy things they may typically not be able to afford.

The goal is for people always to ask them questions as they love to be in the spotlight. Therefore, you would notice that such people love to get expensive things. It could even be that they change their gadgets and wardrobe almost every month, all because they want the attention to be on them.

Living life this way is dangerous as it can get you into a pit of debt that you would be refinancing for a long time. It may not seem like it initially, as the flashy life seems nice. But slowly, it becomes addictive, and you would enter into its loops and have difficulty getting out of it.

Your goal in life shouldn’t always be attention-seeking. Recall that you shouldn’t see life as a competition with others. Instead, live life for yourself.  

 

  1. You can’t differentiate between your wants and needs: Every human needs to know and understand their wants and needs. Your needs are the pressing issues in your life at the moment. It would be almost impossible for you to live without a solution to your needs. For example, every human needs to feed to stay alive. Therefore, spending money on food can be a need.

On the other hand, your wants are things you desire but are not urgent. Therefore, you will keep surviving even if you do not have solutions to your needs. For example, you love the latest iPhone released and wish to own one. That can be what you want. However, you do not have the money to get it. But you can keep surviving life as you have a functional phone that allows you to do anything you desire.

Sadly, one of the reasons why people get into debt is that they cannot separate their wants from their needs. So instead, they begin to spend unnecessarily, trying to satisfy their desires, and it becomes an issue for them. Soon, it becomes a case of borrowing to sort out your needs because you’ve spent all your money satisfying your wants.

If you are trying to stay without getting into debt, you should be able to differentiate your wants and needs.

There is no reason why you would want to live a life of debt and sacrifice your peace of mind. Thus, watch out for these signs before it becomes too late!

About Christopher Ezeadichie 3485 Articles
Ezeadichie Onyeka Michael is the Co-Founder of Haelsoft, a Professional Services Company in Nigeria that provides Information and Technology Services for small and big size companies in Nigeria(Africa). He is an Entrepreneur and Venture Capitalist with Expertise in Web Technology and Digital Marketing. He has developed & Implemented Digital Marketing Strategies(Campaigns) for top brands across sectors in Finance, Telecommunication, Ecommerce who operate in the African market. His professional experience includes key roles at Google Business Group(Nigeria), Google Women on the Web (Nigeria), Edubridge Consultant and Wild Fusion where he has trained over 500 Entrepreneurs on how to use various Web Technology products to succeed online. Customer centricity, User Experience, Conversion optimization are 3 pronged framework he applies around the often-frenetic world of web analytics to ensure that clients stay competitive in the market. He believes that investing in talent is the key to long term success for brands across Nigeria (Africa).

Be the first to comment

Leave a Reply