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Warning Signs

It's hard to admit when you're having a problem with debt.

This is natural. Debt can be painful and confronting a situation that reveals poor planning or judgment on your part can be very uncomfortable. Here are some signs that might indicate that you're headed for trouble:

• Next month's bills arrive before you've paid the ones from last month.
• You don't know how much you owe.
• You get a new loan to pay old loans.
• You only pay the minimum balance due each month.
• You spend more than 20% of your net income (after paying rent or mortgage) on debt maintenance.
• You're using your savings to pay for day-to-day expenses.
• There are more bills than you thought.
• You know what past-due notices look like.
• You get an overdue balance on a credit-card statement.
• You avoid opening letters.
• You rarely keep a running balance in your chequebook.