Financial Danger Signals

If your answer is YES for any one of the questions below, you should take a closer look at your budget--it may suggest a need for credit counseling. More than one YES may mean you need help in preventing debt problems. A YES answer to 4 or more questions means you are in trouble.

• Are you borrowing money on your credit cards to pay current bills?
• Are you charging everyday expenses or small items?
• Is there an increase in money arguments in your household?
• Are you paying more than 20 percent of your take-home income for installment purchases and credit card charges? (this figure may be flexible if you are paying a lower than average house payment)
• Are you forced to reduce your debt payments to pay for food and housing expenses?
• Are any of this month's bills coming in before you have paid last month’s?
• Are you unable to save money for anticipated annual and occasional expenses? (i.e., insurance premiums, auto repair)
• Are you borrowing more money before the old loan is paid off?
• You should know what your total credit indebtedness is. Is it more than you can pay off in 12 months?
• Do your charge account balances grow each month