The first sign of a financial problem is denial that you need to ask for debt help.

A person is most likely to ask for help upon reaching the rock bottom when the only logical way out is bankruptcy. Before you sink deeper into debt, here are some questions you can ask yourself to know if you are in serious need of debt help.

Am I spending over my credit limit?

If you have maxed-out your credit card you can see an “over-limit” added to your next monthly statement. Though not all cards charge these fees because some card issuers waive the penalty, exceeding your credit card limit is a sign of personal financial mismanagement. It can seriously hurt your credit score because credit utilization account for about thirty percent of your credit score.

If you didn’t stay well within the limit available to you, it would alert the credit score company that you are having a hard time managing your finances. You have two options here, either you increase your credit limit or you take a look at your spending behavior. If you are barely able to pay your bill each month, choosing option number two is a good idea.

Do I have multiple credit cards?

Some say that you can never have too many credit cards because you will end up using them. The truth is, having multiple credit cards can help you boost your credit score, and they may come in handy during emergencies. But if you have the habit of forgetting to make payments or you are tempted to spend beyond what you can actually afford to pay because of the available credits, it can hurt you.

Remember that the best way to fatten your wallet and get out of debt is to manage your current accounts and your available finances responsibly.

Am I using credit to pay for basic necessities?

If you are using credit for small purchases such as food, gas, rent and utilities not for convenience but necessity, it could be a sign that you need debt help. Not paying your monthly bills on time and charging your living expenses to your credit cards may push you deeper into debt. Talking to our debt management specialists can help you rearrange your budget so you can have money for your living expenses.

Do I constantly borrow money from relatives or friends?

If you always run to your family and friends during financial emergencies and you’re still short on cash despite loans and credit cards, it may be time to learn how to budget your money. You can start with a debt management plan to know how much you really need to pay off all your debts and the amount you need to live comfortably. While you can make a list of all your debts and do the math, getting the help of debt management would be a better idea, to know about debt consolidation options and other debt management strategies.

When do I ask for debt help? The answer would be now. The moment you start asking yourself that question, it means you are having troubles managing your finances.

At Australian Lending Centre, we can offer you the best debt counseling service in Australia and help you explore options and make decisions regarding your personal finances and debt management problems. Contact us today to learn more about debt assistance, debt agreements and debt relief services.