Take a minute to check your financial fitness with the financial health quiz below. You won’t be graded, but you can use the results to help gauge what you should do next.
Want more detail? Calculate the risk with our debt-to-income ratio calculator to see how financially vulnerable you may be.
- Is more than 15 percent of your income going to pay debts?
- Are you borrowing money or using credit cards to pay for items you used to pay for with cash?
- Are you dipping into your savings to pay current bills?
- Are you paying bills with money intended for something else?
- If you or your spouse lost your job, do you have less than three months’ take-home pay in a savings account?
- Can you usually only make the minimum payment on your credit cards?
- Are you extending repayment schedules – paying in 60 or 90 days bills you once paid in 30 days?
- Are you near, at, or over the spending limit on your credit cards?
- Do you take out a new loan before the old one is paid off or take out a new one to pay off an existing loan?
- Are you unsure of how much you owe (within $50)?
- Do you habitually pay your bills late?
- Do you charge more each month than you make in payments?
- Do you use a cash advance on one credit card to make payments on other credit cards?
- Has a collection agency called recently about an overdue bill?
- Are you threatened with repossession of your car, cancellation of your credit cards, or other legal action?
If you’ve answered “Yes” to three or more of these questions, you’re at risk of increasing financial distress. The sooner you get the situation under control, the easier it will be to dig out of debt and stabilize your finances.
If you gave four or more “yes” answers on the financial health quiz, you’re at risk of slipping into the financial danger zone. Try increasing your income or developing a household budget to carry you through.
ClearPoint also offers a budget calculator which can guide you as well.
Make an appointment for a free credit counseling session with a ClearPoint credit counselor who can help you make a plan to get out of debt.
Or, call 800.750.2227 (CCCS).
This post was first published by Clearpoint. To speak with a Clearpoint Credit Counselor, call 888.808.7285 or learn more about their Military Reconnect Program.