Focusing On Debt

What are the types of consumer debt? Almost everyone these days owes some money to someone else. usually this money is on an extended credit program, extended credit makes it possible for consumers to buy houses and cars and even start a business, as well as buy from merchants with no money out of pocket. There are 2 basic types of consumer debt. One being secured (this debt is tied to a specific piece of real or personal property, most common being house and car loans )and the other being unsecured debt (This is not tied to a specific piece of property, most common unsecured debt being credit cards and medical bills)

Many times you may not see the signs of a financial crisis until it is too late. A financial crisis does not occur overnight. There are five warning signs that you can look for. Do you:

1. Pay you bills late
2. Transfer balances from one account to another account in order to obtain a lower interest payments
3. Depend on overtime at work to cover minimum monthly bills
4. Hope that checks you have written do not clear the bank before payday
5. Borrow from friends and relatives to cover basic living expenses