Many who are weighed down with debt opt first for self-help, trimming back on spending and keeping a close eye on accounts. But much like losing weight, some people have the willpower to shed a few pounds on their own while others require the help of a personal trainer.

There are two types of debt; good and toxic debt. Good debt is one that is typically used to increase value assets, maintain healthy liquidity, and in essence grow wealth. Alternatively, toxic debt is one that has decreasing probability of getting repaid.

1. Unaware of sums owed
Being in a state of unfamiliarity with the total debt you owe is highly detrimental and could lead to inconceivable consequences. It screams of financial disarray and if left unchecked could lead to plenty of regret. If the debt is more than one, begin by listing them from the smallest to the largest and begin paying them off in that order. Like a snowball rolling down a hill, Dave Ramsey, debt management specialist and entrepreneur says with each debt pay off, you gather momentum to pay off the next. He calls it the Snowball effect. After paying off the smallest debt, take the money you were paying on the first debt and roll it into the next highest payment.

2. Juggling bills
This is a situation whereby you are unable to service especially the recurrent monthly bills which ultimately leads to a situation of borrowing from Tom to pay Peter. This is a signal of debt accumulation beyond your ability and therefore there is need to cut back on unnecessary expenditure.

3. Frequent calls from collection agencies
The reason you will receive a call from either Tala, Branch or your local financier is because the debt is
overdue and has triggered concerns and of defaulting. These are unhealthy confrontations especially if you are unable to repay them and may weigh heavily on your mental and emotional well-being.

4. Max out but only pay minimum on cards
This is a sign of reckless expenditure, living on the edge lifestyle that will soon catchup with you. Paying
the minimum on a card could take unusually long for a debtor to pay off card debt. A change in spending habits could be a good place to start.

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