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Avoid excessive borrowing

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This is how you can recognise the signs.

If you have debt, then you are not alone. However, you can be in debt yet still be financially healthy. The key to debt is only to borrow what you can afford to pay back comfortably.

What counts as excessive borrowing?

Excessive borrowing is any amount of debt that you can't comfortably manage. There are several signs to look out for to ensure you don't excessively borrow:

  1. Borrowing to cover everyday expenses
    One of the first signs that you may have a debt problem is if you need to borrow money to cover everyday expenses, like utility bills, food or travel costs.
  2. Repeated borrowing
    Borrowing money repeatedly, and on a regular basis, is another sign that you may have a debt problem. It's a good idea to set yourself a budget, if you don't already, so that you can plan ahead how you will meet your expenses.
  3. Minimum payments only
    If you have more than one credit card, and can only afford to make the minimum required payment on each, this may be another sign of excessive borrowing.
  4. Cash advances
    Using cash advances from credit cards to pay bills might seem like a manageable solution, but it's another sign that you may have borrowed more money than you can comfortably afford to pay back.

Now that you know signs of a potential debit problem caused by excessive borrowing, its important to reflect where you stand and seek professional advice to help you improve.

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HSBC hosts financial wellbeing seminars led by expert speakers. These sessions cover essential tips to help you make informed financial decisions and achieve your financial goals with confidence.

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