Am I in debt?

Debt can creep up on you. What starts as the odd missed payment or reliance on credit cards to get through the month can quickly turn into something harder to manage. If you’ve found yourself asking ‘how do I know if I’m in debt?’ – you’re not alone. The reality is, many people don’t realise the severity of their situation until it begins to affect other parts of their life.

This guide will help you recognise the early warning signs of debt, understand when it might be becoming a problem, and explore your next steps if you’re starting to feel overwhelmed.

Common early signs of being in debt

There are some clear red flags that can indicate you might be heading into debt or already struggling to keep on top of things. Here are some of the most common signs of being in debt:

• You regularly use your overdraft or credit card just to cover everyday essentials.
• You’re paying only the minimum amount on credit cards or store cards each month.
• You borrow from friends or family to make it to payday.
• You delay or avoid opening bills or bank statements.
• You’re being charged late fees, missed payment charges or interest penalties.

Even if these feel manageable now, they can build up quickly. Recognising the patterns early is key to taking control.

You might also notice that you begin rationing your essentials – putting off replacing broken items, cancelling subscriptions, or cutting back on heating to save money. These are small changes, but they often point to a wider financial issue.

When is debt a problem?

A bit of borrowing isn’t always bad. Mortgages, student loans and even credit cards can be manageable if you’re on top of repayments. But debt becomes a problem when it starts to impact your ability to afford the basics, such as rent, food or utility bills, or when it begins to cause emotional or practical disruption in your life.

Ask yourself:

• Are you prioritising repayments over essential expenses?
• Have you missed multiple payments in the last few months?
• Are creditors or debt collectors contacting you regularly?
• Do you feel anxious, scared or unsure how you’ll repay what you owe?

If any of these sound familiar, your debt may already be affecting more than just your bank balance.

A growing debt problem can also affect your relationships, work, and sleep. People may hide their financial struggles from those closest to them out of fear or embarrassment. The secrecy can make the situation feel even more isolating.

What can growing debt look like in daily life?

Debt doesn’t always show up as a single big problem. It often builds slowly and subtly:

• You avoid social plans because you can’t afford them.
• You feel nervous every time your phone rings or the post arrives.
• You start juggling bills – paying one while delaying another.
• You stop checking your bank account altogether.

These habits are more common than you think – and they’re often signs that debt is quietly taking hold. If you feel like you’re just about keeping afloat but things are getting tighter, it might be time to speak to someone.

You may also notice you’re relying more on short-term solutions, like payday loans or buy now pay later services, which can create longer-term consequences. These stopgaps might help for a month or two, but over time, they can deepen the debt cycle.

Check your financial health

Sometimes it helps to take stock of your current position. Here’s a simple checklist to help you assess whether your debt may be becoming unmanageable:

• Are you behind on priority bills (like rent, council tax or utilities)?
• Are you using one form of credit to pay off another?
• Have you had a recent drop in income that’s made repayments harder?
• Do you feel in control of your monthly budget or are you unsure where your money is going?

You can also keep a simple spending diary for a couple of weeks. Write down every payment, no matter how small. It might feel uncomfortable at first, but it’s often the first step towards regaining a sense of control over your finances.

If you ticked more than one of the points above, it might be time to look at ways of managing your debt more effectively.

What to do if you think you’re in debt

First off, take a breath. Debt is more common than you might realise, and help is available. The key is not to ignore it.

Start by:

• Reviewing your income and outgoings
• Listing your debts, including how much you owe, to whom, and any interest rates
• Identifying any missed payments or urgent priorities.

From there, you can begin to make a plan. For some, small budgeting tweaks might help get things back on track. For others, a formal debt solution may be a better fit.

There’s also value in talking things through with someone impartial. A regulated adviser can help you understand your full financial picture and explain the pros and cons of different debt solutions without judgment.

How MoneyPlus can support you

If your debt feels unmanageable, it might be time to speak to a professional adviser. At MoneyPlus, we offer confidential, non-judgmental advice tailored to your circumstances. You can also visit MoneyHelper for free, impartial debt advice.

We can help you explore options including:

• A Debt Management Plan (DMP), which spreads repayments over a longer period
• An Individual Voluntary Arrangement (IVA), a legally binding agreement with creditors that can reduce the amount you pay back
• Advice on priority and non-priority debts, helping you tackle the most urgent bills first

Our advisers can also help you build a realistic monthly budget that prioritises essentials while creating a manageable repayment plan for your debts. It’s not about judgment – it’s about finding a way forward that fits your life.

Taking that first step can feel difficult, but the sooner you act, the more options you’ll have. Don’t wait for things to spiral. Contact us at MoneyPlus today to find a way forward that works for you.