Debt Health Assessment

 

“Health is not valued till sickness comes.”

 

Please answer honestly, this will be for you to retain. Many of the questions are subjective, they are designed to get you to think about the impact of financial decisions and debt. On a sheet of paper, number 1 through 12, for each question write yes or no.

1. Are your debts adding negative pressure to your home life?

2. Is your FICO credit score less than 620? (Also answer “yes” if you do not know your score)

3. In the past year, have you been charged an insufficient funds or overdraft charge from your bank more than 3 times?

4. In the past year, have you used a payday or title loan?

5. Have you ever made unrealistic promises to your creditors or given them false contact information so they could not bother you?

6. Does the pressure of your debts make you careless of the welfare of your family?

7. Do you ever fear how you would financially support yourself and family if you lost your job?

8. Do you typically pay the minimum required on debts?

9. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?

10. Do you usually expect a negative response when you are subject to a credit investigation?

11. Have you ever developed a strict regimen for paying off your debts, only to break it under pressure?

12. Do you often find yourself unable to account for the money that has been spent?

Count the number of questions you answered “yes” to and write that number below

______________

There is no score to determine how “good or bad” your situation may or may not be. Obviously, the more questions answered “yes”, then the more work will need to be done to improve your financial health. Isolate the problem areas. What action steps can be done to transition that yes to a no. Record the number of “yes” responses. Map out your action plan and take the assessment again in 6 months. Has the number of “yes” responses gone down?

At one point, I answered yes to over half of these questions, I am happy to report that today I can answer “no” to all of the above questions.

It’s your turn!

What additional questions would you ask? How would you rate your “debt health”? Good, fair, poor?
Do you know someone in “poor financial health? What can you do to help them?

Tagged as: Debt