Most people borrow from banking institutions when purchasing assets such as a house or a motor vehicle. Being in debt is not necessarily bad.
In fact, if a loan is used wisely, it can help increase your financial wealth.
However, if it is not managed properly or if you think you are likely to get into financial difficulties, you need to get help on how to manage your debt.
Warning Signs of Debt Problems
- You always spend more than what you earn
- Your credit limit is fully utilised on most of your cards
- You are always borrowing money to make it from one pay to the next
- You pay only the minimal amount of your loan repayments as and when they fall due and not to reduce your total debt
- You find yourself arguing with your spouse about money
When you face difficulties in repaying your debt, address the problem quickly to bring it under control. Do not ignore it, as the debt burden may worsen, and may lead to situation where you will not be able to manage it.
If you think you debt is getting you into financial difficulties,
get help on how to manage it
Reprinted with permission from BankingInfo (A Consumer Education Programme)
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