These days, it’s easier than ever to spend more than you have. Living beyond your means usually doesn’t become a reality until it’s too late, and debt relief isn’t always readily available. The legal team at Frances H. Hollinger Attorney at Law in Foley, AL, advises that it’s important to assess your finances regularly for warning signs of living beyond your means. This will help you pause and begin focusing on rebalancing your debt and savings.

3 Signs You’re Living Beyond Your Means

1. You Save Less Than 5%

Saving is essential for planning future purchases, retirement, or having a rainy-day fund. A healthy financial plan is to have a separate savings account where you deposit at least 5% of each paycheck after taxes. If you’re unable to do this due to unregulated spending, step back and look at where your money is going. Without a savings cushion, debt relief will only help so much before bankruptcy becomes the only solution.

2. You’re Carrying Credit Card Debt

Credit cards are a great resource—but only if you pay them off at the end of every month. If you find that balances are compounding on top of each other every month, it’s time to assess your spending. With interest rates, that debt is only going to increase, and the longer you put off paying, the more significant it will become. Large purchases with a payment plan are okay, but if frivolous spending is the reason for the debt, you need to realize you’re spending money you don’t have.

3. You’re Borrowing Money or Taking Out Loans

In a paycheck-to-paycheck lifestyle, borrowing money may be the only form of debt relief you can muster, and it’s dangerous. Loans will only add to your debt, and if you’re taking on more debt to pay off current debt, you’re only making the situation worse. Responsible money management should never require major risks or sacrifices, so keep a manageable debt you can pay off on a month-to-month basis.

If you’re looking for debt relief, turn to an attorney at Frances H. Hollinger Attorney at Law. They can help you explore options and guide you toward better financial management. Call (251) 943-9030 today to schedule a consultation, and visit their website to learn more about their services.