Live My Life Online

In Personal finance arena, we are always talk about assets and liabilities or debts. So today I will touch on how to measure one of the most critical item in personal finance, ie. debts.

To determine whether you are having problem managing your debts, I have outlines the following questions to test whether you are in debts trouble.

• Your monthly spending is higher than your earning;
• You use credit cards where you used to pay cash, such as at grocery store or restaurants;
• You have depleted your savings, or worst, using cash advance from credit cards to pay old debts;
• You have lost track of how much you spent;
• You have lost track of how much you  owe;
• You put off your  monthly fixed bills such as electricity bill, telephone bill to pay off your higher debts such as credit cards debts and others;
• You regularly receive letters and calls from bill collectors;

So what to do next after knowing all these? Of course to start change your spending patterns, by making different choices during our daily life such as:-

• Record all the spending and cut down unnecessary spending;
• Pay cash if possible, avoid using credit cards;
• Spend within budget;
• Always compare pricing for grocery items
• Be aware of implication of assets and liabilities

Share This