Warning signs: When your debts are getting out of control
💡 Quick Tip
Learn to identify financial warning signs before it is too late. Discover if your debts are taking control of your life and what immediate steps you must take to stop this spiral and regain your peace of mind today.
The invisible weight of debt
Falling into over-indebtedness rarely happens overnight. It is a slow and silent process. We often justify small excesses, but there comes a time when the math does not lie. Recognizing the problem is the hardest but most important step.
The 5 red flag warnings
If you identify with any of these situations, your economy is in the danger zone:
- Paying credit with more credit: Using one card to pay another or taking quick microloans is the most serious sign that your cash flow is broken.
- Only paying the minimum: If you only pay the minimum monthly fee, 80% of that money goes to interest.
- Not knowing exactly how much you owe: Avoiding opening bank letters out of fear is a psychological defense mechanism.
- Hiding expenses: Lying to your partner about prices or accounts means debt is affecting your integrity.
- Financial insomnia: Money anxiety keeps you awake, affecting your health.
The first step to recovery
Do not panic. Make a brutally honest inventory. Write down every cent you owe, to whom, and at what interest rate. Clarity eliminates the fear of the unknown.
📊 Practical Example
Practical example with real numbers
Let us analyze a person with a net salary of €1,500 per month.
- Car payment: €250
- Personal loan: €150
- Credit card: €100
- Total to debt: €500
This person allocates 33% of their net salary just to pay past debts. Experts recommend this figure never exceeds 15%. If their rent is €600, they have barely €400 left to live on for the month. At the slightest unforeseen event (a €200 breakdown), they will have to use the card again, entering an endless spiral.
