Obviously, most people can't pay for a house and car with cash, so secured debt is usually OK to carry. It's that credit thing that gets them in trouble. Here's what Williams and Debt Counselors of America President Steve Rhodes say are key warning signs that you could be in over your head, and the first steps you should take to turn things around. That's a red flashing light that you could be in trouble. Obviously, preoccupation with money takes time away from other issues, which can hurt relationships as well.
None paints a pretty picture.
Problem is, if you're like two-thirds of Americans, you don't pay the balance off every month. If you're using credit cards to pay for items you used to purchase with cash, it could be a troubling sign. By using credit cards instead of cash, checks or debit cards, it's easier to go over budget, Williams said. You don't know how much you owe Let's see, there's the two Visa bills, the Mastercard, the Macy's card, the car loan payments. Adding it all up can be scary because you'd be slapped with reality, but it's a healthy start.