5 Most Common Financial Red Flags
Have you ever tried to spot the red flags in your finances? Here are our top 5 most common indicators that there may be a problem on the horizon.
In this article, we'll cover:
Much like relationships, it’s uncommon for serious problems in your finances to spring up overnight. Often you can spot a pattern of red flags that may indicate you’re headed for trouble. That’s why we’ve put together the 5 most common warning signs so you can spot them early and get them sorted before things seriously start to go wrong. And the best thing is… there’s no need for couples counselling!
01. You’re living from paycheck to paycheck
Do you often struggle to make your earnings stretch to payday? Well, if the answer is yes then you’re not alone. Did you know that 15% of the UK population don’t have any savings?
However, if there’s one thing that Covid taught us, it’s that life doesn’t always go to plan. That’s why it’s recommended you should have enough savings to cover all your expenses for 3 months. So, if you make one new year’s resolution for 2022 then why not open a savings account? This way you can have peace of mind that you’ve got something to fall back on for a rainy day.
02. You can’t afford to pay off your credit cards each month
Having a credit card isn’t necessarily a bad thing. In fact, responsible use of one is a great way to improve your credit score. However, this only works if you pay it off fully at the end of each month. You shouldn’t be relying on your credit card as an additional source of income as this can quickly add up due to interest rates. So, if the total balance on your credit card seems to constantly be rising then this could be a sign you’re headed for trouble.
03. You’re relying on payday loans to make ends meet
Payday loans can be a good option if you need emergency cash fast. However, due to their high-interest rates and fees they shouldn’t be used for everyday expenses. So, if you’ve found yourself relying on them as part of your income then this is a major red flag that you’re on the road to accumulating unmanageable debt.
04. You’re hiding your debt or spending from loved ones
Do you ever find yourself binning credit card statements before your partner sees them or opening new lines of credit in secret? If the answer is yes, then these could be signs that you’re in denial about your financial issues.
The worst part is that having an unhealthy relationship with your finances is likely to impact the ones that really matter. Additionally, keeping the burden of financial problems to yourself will put a strain on your own mental wellbeing. So, remember that communication is key and there’s always help available if you reach out for it.
There’s no need to tackle debt on your own. Apply today for help taking back control of your finances.
Apply Now05. You’ve had multiple reminders on late payments in the last year
2021 has been a hectic year. So, don’t worry if you’ve forgotten to pay your phone bill or make a deposit. However, if receiving reminders on late or missed payments has become common practice then this could be sign that you’re avoiding them and it’s more than a simple mistake.
Do these flags look familiar?
If any of these red flags look familiar, then now’s your opportunity to take action before things get out of hand as the longer you ignore these problems the worse they will get. That’s why we’re here to offer expert financial advice to help you tackle your debts. Apply now and we’ll see if you’re eligible for a consolidation loan that could allow you to consolidate your debts into one affordable monthly sum.
So don’t ignore the red flags and start improving your relationship with your finances now.
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By: Maggie Elliott.
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