Some people get caught in debt crisis without warning. Certain happenings in life such as sickness, unemployment, business shut down, or divorce can come at the most unexpected moments and drain one’s finances. This is why it’s very important to be prepared all the time. Recognizing the signs and taking steps to counteract the problem as early as possible is best.

In this article, let’s talk about the six warning signs that you could be in financial danger.

You’re usually late in paying off your bills.

Are you frequently late in submitting your payments? Do you often have to pay the extra late penalty because you weren’t on time? Are you aware of your payment schedules or do you tend to wait for Past Due Notices from your creditors before you pay off your debts?

Keep in mind that debts can quickly accumulate if you don’t pay them off immediately. In case an emergency situation happens and you’ll need the money, at least you won’t have to worry about your bills piling up because you didn’t pay them while you still had the chance.

You’re using credit cards without considering your repayment.

Are you prone to overspending or impulse buying? Do you often maximize your credit card’s limit? Charging purchases to your credit card without seriously considering whether you have the means to pay off your balances on time is a major red flag that you could be leading yourself to a debt trap at any moment.

You take out cash advances from your credit card to pay other bills.

Do you find yourself using your credit card for cash advances so you can have money to spend or so you can pay off another debt? This is very risky habit. Remember that cash advances usually come with an even higher interest rate than the regular APR. Besides that, these transactions are not covered by the grace period so you are automatically charged with the APR the moment you take out your cash advance.

You’re not aware of how much debt you really owe.

Are you able to keep track of your debts? Do you constantly monitor your accounts? Or do you tend to put off this important step because you’re too busy or just not interested? Do you put away your billing statements without even checking if the charges in it are correct? Do you just pay off the amount in your bill without bothering to check?

There are arguments between you and your family because of financial issues.

When money matters get in the way of personal relationships, you should be alerted that something’s not right with the way you’re managing your finances. If this is true in your case, the best thing to do is to seek help from a reliable credit counselor.

You use your credit card for your daily necessities.

If you’re using your credit card for your littlest expenses because you simply had ran out of cash, you should know that you’re financial danger. If you can’t pay off those credit card purchases on or before your due, you’re in trouble with the additional high interest rate and late penalty charges. Obviously, you are putting yourself in a bad debt situation if you’re using your credit card to replace your daily cash.