9 Signs You’re Getting Into Debt

Most women love going to the mall and shopping. Clothes, shoes, perfumes, accessories, makeup, etc. With so many products on sale, it’s really hard to control yourself.

But, of course, a person’s expenses are not restricted to the purchase of products for personal use. Most people (whether men or women, married or single) have bills to pay: food, house rent, water, electricity, telephone, fuel, school or college, etc. And, precisely for this reason, it is necessary to have balance, so that the expenses, in general, do not exceed the income that one has.

André Massaro, consultant and financial educator, professor at the BM&FBovespa Educational Institute, explains that the basic rule of personal finance is to “spend less than you earn”. “One must beware of traps and temptations. Obviously we all want to consume the best, but we need to raise our standard of living by increasing income, not by increasing indebtedness”, he highlights.

Women vs Men: which ones accumulate more debts?

Most people have in mind the idea that women spend more, as they are more likely to shop for personal use (clothes, shoes, etc.). But does this really make sense? Do women spend more than men and, therefore, tend to be more indebted?

André Massaro explains that, worldwide, research indicates that women are more indebted than men, but not by a very large margin. “Men and women have different consumption patterns and, consequently, different indebtedness patterns. Men buy less often, but when they do, the ‘damage’ is greater. Men tend to be more intimate with finances (and consequently easier to adopt controls), but they are also more self-confident and end up relying on money they haven’t received yet,” he says.

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Also according to André, women still have some other aggravating factors: “some women still earn (on average) less than men; suffer intense social pressure (mainly on the side of appearance and personal presentation) and often end up with a large share of the financial responsibility when the family breaks down”.

When is a person considered indebted?

André Massaro highlights that it is very interesting to analyze this issue, as most people only consider themselves indebted when they have overdue debts. “However, if we are to define it strictly, a person who has acquired a good or service, but has not yet paid for it, is already in debt (as he will have to pay). Those installments, even if they are far from due, are debts (try not paying to see what happens…)”, he says.

With that in mind, below you can see a list of some signs that you may be getting more and more indebted. It is worth paying attention and preventing this from happening!

Symptoms that you are getting into debt

You start making all purchases on your credit card or give post-dated checks;
When you can, you buy on credit;
Your credit card limit becomes insufficient, as you have many purchases in installments;
You need to go after another credit card;
You start using complementary lines of credit, such as overdraft;
You need to go after debt renegotiation processes;
You realize that you have to prioritize payments for more important bills, such as rent, consumption bills, etc., as it will not be possible to pay everything at once;
You begin to consider the possibility of selling your goods or even simple objects to help pay off debts;
You need to borrow money (from family or friends).

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I’m really in debt, what can I do?

After accepting the fact that you are already in debt, it is common for the question to arise: what can I do to restructure my financial situation?

André Massaro explains that the “standard recipe” to solve a debt situation is, first of all, to identify what caused the debt and remedy it. “Debt itself is not a problem, but a consequence. It is necessary to put the bills in order and make the expenses smaller than the income, and that, unfortunately, means ‘cutting’. Only after remedying the cause should one seek to resolve the debts themselves, seek to renegotiate terms and amounts. If the thing is not done in this sequence, the debts will be temporarily settled, but in a matter of time, everything will be out of control again”, he highlights.

Within this idea, you can find below some tips that can help you better control your expenses and, consequently, not get into debt:

Stop carrying checkbooks and credit cards;
Always leave with the money to not exceed this limit;
When shopping for personal use (such as clothes, shoes, accessories, etc.) do so in sight, to have control over your expenses;
If you are in the habit of shopping online, avoid visiting the shopping sites you used to buy from;
Stop and think before you buy: do I really need this? I can buy? Can I wait a little longer to buy?
Evaluate if you don’t need help. Few people know, but compulsive shopping is considered a disorder and requires treatment with a psychologist.

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And finally, the fundamental rule: never spend more than you earn! Here’s a tip, since, in fact, for women the temptations of consumption are greater!