If you have debt, then you are not alone. However, you can be in debt yet still be financially healthy. The key to debt is only to borrow what you can afford to pay back comfortably.
Excessive borrowing is any amount of debt that you can't comfortably manage. There are several signs to look out for to ensure you don't excessively borrow:
Borrowing to cover everyday expenses
One of the first signs that you may have a debt problem is if you need to borrow money to cover everyday expenses, like utility bills, food or travel costs.
Borrowing money repeatedly, and on a regular basis, is another sign that you may have a debt problem. It's a good idea to set yourself a budget, if you don't already, so that you can plan ahead how you will meet your expenses.
Minimum payments only
If you have more than one credit card, and can only afford to make the minimum required payment on each, this may be another sign of excessive borrowing.
Using cash advances from credit cards to pay bills might seem like a manageable solution, but it's another sign that you may have borrowed more money than you can comfortably afford to pay back.
Now that you know signs of a potential debit problem caused by excessive borrowing, its important to reflect where you stand and seek professional advice to help you improve.
To learn more about Financial Wellbeing please get in touch with us at:Financialwellbeing@hsbc.com.lk
Start planning for the later stages of life
Protect the things that matter the most to you
How to avoid the most common financial threats