Are You in Debt Denial? How to Tell If You Are Trying to Avoid Your Debt

Admitting that you are in debt is never easy. But if you are trying to avoid facing your debt problems, you will never get around to coming up with a plan to reduce your debt. Here are some easy-to-recognize signs that you are in debt denial.

1. You don’t have any idea how much money you owe or how much your monthly payments are. Before you can start to climb your way out of debt, you need to add up all of your loans and credit cards to figure out the minimum total monthly payments. Without knowing precisely what you owe, there is no hope of getting out of debt.
2. You are getting hounded with phone calls from collection agencies. If you start receiving these types of calls, then it means some of your bills are so late that your creditors have turned to a collection agency. This will do severe damage to your credit score.
3. You continue to spend way more than you bring home despite being in debt. This includes eating out all the time, spending money on a health club membership, going to expensive hair salons, purchasing brand new outfits, buying new electronic gadgets or other electronic gear, and buying other items even though you can’t pay all of your monthly bills.
4. You have a credit score below 600. This is a dead giveaway that you have late payments or have collections on your credit report.
5. You are lying about the amount of debt you owe because you don’t want to concern your family or admit to yourself how bad your debt situation has become.

Debt denial is not something that you can continue using to avoid your debt. Before long, you will be faced with the prospect of repossession of your car, a foreclosure, or having judgments filed against you. These repercussions will only force you to hire an attorney, which means even more debt. So if you have denied your debt problems, it’s time to face facts and put together a plan to pay off all your debts.