If you don’t realize you have a problem with debt, there’s a good chance you’ll miss the signs that are right there in front of you! I aim to prevent this by sharing with you the most common signs that you’re in over your head financially. Here are some things to look out for…

• Denial: This is probably the most common sign and it comes with the highest consequence. Add up all your debt on a piece of paper and write this number in large, bold numbers! This is the enemy! Make paying this figure down your #1 priority!

• Carrying Over Credit Card Balances: If you’re continually carrying over a balance on your credit cards, there’s a good chance you’re spending more than you make. This is a downward spiral folks, and you need to make a change now! Take your credit cards out of your wallet or purse and put them away for good. If you don’t trust your self-discipline, put them in a tupperware container, add water, and place it in the freezer (this works great for impulse shoppers).

• Making Minimum Payments: If you continuously make minimum payments on bills, you might want to re-evaluate your spending plan and look for ways to save extra money to send to your debt (for ideas on how to do this read my article Not So Mandatory Expenses).

• No Discretionary Income: Not having any discretionary income is often the result of poorly managed, or non-existent spending plans. Get some great tips about spending plans and even some blank forms to get you started on Dave Ramsey’s website: daveramsey.com.

• No Emergency Fund: Without an emergency fund, you will be forced to rely on a credit card when an unexpected expense comes up. Instead, try making minimum payments on all of your bills until you can save $1,000 - $1,500 in a savings account for emergency situations. I recommend a high yield online account like the Orange Savings Account ING DIRECT at (learn more about this in my article Saving Money Online).

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