There are people who, in spite of enjoying good income, find themselves in a critical position because they use and abuse credit. Below we have outlined some warning indicators. If you answers any of the following point affirmatively you should be on your guard.
1: You pay 15% or more of your net income in paying off debts (excluding the mortgage on your home).
2: You use credit to acquire goods which could be bought interest free within the next few months.
3: You have to use credit to acquire essential goods (for example your weekly household shopping).
4: You borrow to pay off old debt.
5: You have to think which of your creditors you have to pay first.
6: At a given time you find difficult to calculate how much you owe.
7: Loss of employment would immediately bankrupt you.
It is vital noting that the use of credit and loans reduces the buying power. In other words loans and credits lead to impoverishment if not properly utilized.
There are cases where the use of credit is more than justifiable. Example buying a home is a wise investment in which, while interest is charged the benefit compensate the expense.
However there are people who use credit when they do not have cash in hand.
Be aware of the alarm sign if you don't want to have unpleasant surprise in near feature (Meligosa J. Dr,)
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