Sunken Ship

How to know that you are already in heavy debt? These are some indicators stated on the book by Azizi Ali, Millionaires are from a different planet!

1) Missing payments
2) Paying less than the agreed amount
3) Paying the minimum due
4) Busting your credit limit on the credit card
5) Having to borrow more money to settle old debt commitments
6) Not able to handle minor financial emergencies
7) Avoiding calls of creditors
8) Wondering how on earth are you going to get out of this mess

So, if you are having some or all of the symptoms as stated above, you are in big trouble. Having debt is like cruising the sea in a sunken ship. The more holes the ship have, the more deeper the ship will sank. Therefore, the first immediate step you should do is to try to find the biggest hole in the ship and plug it quickly. In the financial world, it means try to identify which debt carries the highest interest and eliminate it quickly.