Car loan payments, credit card bills, mortgage payments, bank loans, rent payments…Sometimes it feels that almost all your money is going toward paying off your debts. But, even though it may seem that being in debt is just another part of adult living, this definitely doesn’t need to be this way.

If you manage your money well, living within your means, and even saving for purchases instead of getting them on credit, is absolutely possible. By managing your money well, you can not only pay off some of your debt, but you also will learn not to rely so heavily on borrowing.

Bear in mind, though, that there are forms of debt, for example a home loan, that are pretty much acceptable. Most houses will be increasing in value as time goes by, but what’s more important, the interest you pay on a mortgage is tax deductible, which will save you money on taxes.

There are more types of ‘good’ loans, for example a student loan. Generally, the more education an employee has received, the higher the wages will be, so student loans will usually have a financial payoff in the long term.

The sort of debt that you really need to avoid the one called ‘consumer debt’, such as auto loans, credit cards debt, and department store credit cards. Things bought with this sort of debt will not get an increased value, and mind you, the interest rates that you need to pay this way may be pretty high, and there’s absolutely no tax benefit for this sort of paid interest.

Sometimes it may be unavoidable to work with consumer debt, for instance if you want to buy a new car, but getting too deep into consumer credit is among the biggest mistakes that people make. There are so many people who are carrying huge balances on various credit cards and department store cards while at the same time they also need to pay off hefty auto loans.

This kind of multiple debts are not only very expensive, it will also drain any financial resources and lead to financial disaster. Now how do you think you can stay away from falling into this massive consumer debt trap? Let’s take a look at a few tips that may help you stay financially healthy.

Are You Too Far into Debt?

We know that many people find it pretty difficult to live with no debt at all. Well, of course it is possible to deal with smaller debt amounts in a successful way, but you should remember that though a smaller amount of debt is not necessarily bad, having excessive debt absolutely is! Excessive debt is the biggest obstacle to reaching your goals.

It will rob you of all your dreams and prevent you from reaching the life you deserve and always wanted to live. The feeling of hopelessness that is usually the result of excessive debt can drastically affect your health and behavior, and it may easily destroy your relationship with people you love most.

Take a look at these ten signs that you could have a serious debt problem. If only more than two are applying to you, try to find professional help.

  • More than 20% of your paycheck is used to pay off auto loans, credit cards, or any other consumer debt.
  • You are borrowing money to be able to pay off other debt.
  • You have no idea of how much money you actually owe.
  • You just make minimum payments on all bills.
  • You are missing payments, or you are paying your bills too late each month.
  • Companies that you owe money to are calling you or are coming to your home to urge you to make payments.
  • Stores are refusing to offer you credit.
  • You are borrow money from a retirement account or use a credit card to pay monthly bills.
  • You are writing post-dated checks (your checks have a date later than when you wrote them), or you often bounce checks.
  • You needed to take on an extra job only to keep up with paying your bills.