It’s pretty clear that America has a debt problem. Irrespective of the media’s recent recession coverage, Americans have been spiraling out of financial control for some time. Debt is increasing and savings numbers have been negative for the last decade. Now, if you display one or two of these warnings, that doesn’t necessarily mean that you’re addicted to debt; however, it could lead to addiction if left unchecked. But, if you, like many Americans, have all 10 tendencies, then I suggest you seek professional help because you’re probably in real financial trouble.

With that in mind, let’s look at 10 warning signs that could mean you’re addicted to debt, and make no mistake, there are those out there who are.

# 1 – Unsure of your financial state

If you have no idea what’s in your account, what your interest rates are, or where you stand with retirement income you definitely fall into this category. Not having a plan for your finances could mean that you’re in denial about your situation. And like most other addictions, admitting there’s a problem is the first step. Getting your finances in order would be the second.

# 2 – Terrible savings habits

If you don’t even have a savings account, I’m genuinely worried. But, if you do and you’re NOT saving, you should be. This includes planning for recurring expenses like taxes or daycare (if you have them). If you’re not planning for these things and then habitually act surprised when they come around, you have a problem. If this recession has taught people anything (besides that big banks are the spawn of all evil), hopefully it’s that we need to be saving for a rainy day.

# 3 – Shop-a-holic

Here’s another rehab and anonymous group we need. If you shop when your happy, bored, sad, depressed, or any other emotional state you can think of, then you have a problem. Habitual shopping for things you don’t even want, or need for that matter, just leads to a shortage of money and a pile of useless junk. I’m not talking about your needs-based shopping folks. I’m talking about those people who wander from store to store, picking up whatever strikes their fancy. Step away from the stores and give yourself a 24-hour cooling off period. You’ll be surprised how much less “stuff” you have.

# 4 – Always buying on credit

Ok, this one alone isn’t all negative. I use credit for everything just to get the points, but then I pay it off at the end of the month. If that’s your pattern, then fine. But what I’m talking about here are those who buy useless junk on their credit cards with no intention of paying it back at the end of the month. If you think nothing of whipping out a credit card to purchase what you want, right now, then you may have a debt addiction.

# 5 – Using credit to pay off credit

If you’re having to use one credit card to pay off the other every month, then you’ve got some financial troubles and need to reevaluate your situation. There are plenty of people who don’t pay off their balances every month but are working to that end. However, if you’ve got a nice game of ’round robin’ going on, your intention is to clear enough off of one card to allow you to spend on another. That’s an addiction, like a crack addict trying to figure out where their next fix is coming from.

# 6 – Living paycheck to paycheck

This is another that, by itself, isn’t completely telling. This could be due to a lack of financial education. Someone may not know how to budget, etc. But, for those where this is just one in a long line of warning signs, it’s a pretty good one to take into consideration. Living paycheck to paycheck usually means that you have no savings and no plans to establish one, and if we were to look into your finances, we’d find you probably don’t have a clue what’s going on. See the pattern? Most of these signs build on one another. So, if you don’t have a savings plan in place and you’re living paycheck to paycheck, start paying attention because you may have an addiction. And like any other addiction, getting rid of debt is tough.

# 7 – Spending just to spend

This is in line with number three, shop-a-holic, but goes beyond just emotional shopping. This is the junkie getting their fix. This is where people spend money because that’s what they’ve always done. It makes them nervous or anxious when they don’t spend. Extra money burns a whole in their pocket. If you get a Christmas bonus and instead of saving it, you blow it just because you feel like you should, then you’re spending just to spend. You’re getting your fix.

# 8 – Buying more house or car than you need

Both are fairly large debt payments and if you’ve got an addiction, you may not even think twice about it. Spending money comes naturally and since you live in the moment, you buy what you want now, not what’s economical for your situation. People are constantly doing this and it’s one of the reasons we’re in the mess we’re in – not that it’s all their fault, but there is a level of responsibility to our debt addicts as well. If you’re just starting out, a smaller house may be more practical. A hybrid may be a better option than a hummer. Living beyond your means will keep you in debt and your constant decisions to do so are a big red flag that you’re an addict.

# 9 – Borrowing more money to pay the money you already owe

This sign isn’t about those who consolidate their debt as part of a “debt reduction” plan. No, this refers to those who live in a continuous cycle of borrowing to cover their borrowing. Those who will borrow to pay down their credit cards, but then run them up again, and borrow more to pay them down yet again. This is a vicious cycle that is difficult to maintain, and definitely one that will catch up with you before long. If you’re doing this, STOP. I don’t know who you are, but I’d be willing to put money on the fact that it’s affecting your health, your relationships, and your job performance, none of which is going in a positive direction. Seek help and end the cycle.

# 10 – An uncontrollable urge to keep up with the Joneses

And last but not least, if you have the overwhelming feeling of materially one-upping your friends, family, coworkers, or neighbors then you’ve got a complex known as ‘keeping up with the Joneses.’ This condition is causing you serious financial distress and may be affecting your ability to be reasonable about your finances and your addiction to debt. If you feel yourself in this position, the best thing to do is take stock of what is important in your life and worry about that, not what trinket or gadget your neighbors just picked up. The reality is, the Joneses are probably in the same boat as you and may even think of you as the a Jones they‘re trying to keep up with. There’s some food for thought.

Ok, so this article is a little ‘tongue in cheek,’ but the signs are real enough. If you can relate to several on the list, you may have a problem with debt and it’s best to nip it in the bud before it gets out of hand. If you don’t exhibit any of these warning signs, then you’re well on your way to being financially secure.

What other warning signs do debt addicts display? How do you rate on a scale of 1 to 10, 1 being ‘not an addict at all’ and 10 being ‘a complete debt addict?’ You don’t have to answer that here, of course, but at least be honest with yourself.

Related posts:

1. Dying to Shop? How to Spot an Addiction to Plastic
2. 8 Signs Your Money Hates You
3. One of my posts is in the Carnival of Debt Reduction
4. Confessions of a Credit Addict
5. 6 Lessons Learned From Being In Debt