You think of credit as cash, not debt.
- Your debts are greater than your assets.
- You owe more than seven creditors.
- You are an impulsive or compulsive shopper.
- You and your spouse are dishonest with each other about your use of credit.
- You don’t know how much your monthly living expenses are or the amount of your total debt.
- Your expected increase in income is already committed to paying off debts.
- You depend on extra income, such as earnings by a second person or overtime by the breadwinner, to help you make ends meet.
- You have less than two month’s take-home pay in cash or savings where you can get to it quickly.
- You have to pay back several installment payments that will take more than 12 months to pay off.
- You have more than 15 or 20% of your take-home pay committed to credit payments other than your home mortgage.