Just as medical conditions have symptoms, so does trouble in your personal finances. There are several signs that indicate the looming financial disaster. As symptoms of a disease allow physicians to diagnose and treat the health condition, knowing the signs of financial trouble also allow you to recognize and address your financial situation. As they say, prevention is better than cure. By knowing the signs, you can change your purchasing behavior and make sounder financial decisions.

* Can’t make any savings

One of the early signs of financial trouble is not being able to save. If you’re able to set aside a fixed amount for savings before but can’t do so now, it indicates that there’s a problem with your finances. If you can’t make savings as you did before, then you should be concerned. It’s either you’re spending more than you have been, or you’re income has been decreasing. Either way, this should make you aware that there’s a problem.

* Decreased purchasing power

Another simple sign is that you can’t buy things as easily as you did before. This may be because of maxed out credit cards or inadequate income. If you’re not aware of why this is happening, it’s time to account and create a record of your spending to determine where your money goes and why you don’t have enough. It would be a bad situation already if you can’t even pay for needed supplies, such as food and other necessities. But before you reach that stage, you should have been alarmed already when you can’t afford luxury items that you were able to buy before.

Related to this is when you don’t have much cash on hand. Meaning, you use credit cards to purchase groceries and gas. When you reach this point, then there is good cause to be concerned about your finances.

* Credit card debt

Another symptom of financial trouble is credit card debt. Regardless of how many cards you have, if one of your cards is maxed out, that’s already an indication of possible financial trouble. The same is true if more than one of your cards is at the limit or near the limit. Another indication is when you can only make the minimum payment on your credit card bill. If you also use other cards to pay off the debt of another, that’s another sign that you’re in financial trouble.

Another thing to watch out for is when you charge more than what you pay monthly in credit card dues. If this is the case, then you’re dangerously increasing your credit card debt.

Eric Tyson, the author of "Personal Finance for Dummies," states that debt should be less than 20% of your annual income. You can use that as a rough gauge for the status of your finances. If your debt is larger than that, you might be leading to financial difficulties.

* Difficulty in making payments

You should also keep an eye on the other debts that you may have. This includes loans, such as auto loans and mortgage payments. If you are having a hard time meeting those payments or are already behind the deadline, then you’re in trouble. Worst case is when you even worry about paying for the necessities, such as rent, electricity, and groceries.

* Overtime and part-time work

If you engage in overtime and part-time work just to pay the bills, then you are experiencing financial stress. Supposedly, these actions should bring in more money, but if they serve as stop-gap solutions for you to make even each month, then you know you have a problem. Usually, this is caused by excessive debt or spending more than what you can afford.

* Phone calls and letters regarding payments

One of the more obvious signs that you’re facing financial troubles is when you get calls and letters for you to settle your bills. Of course, everyone experiences difficulty in paying their bills on time, but if these instances happen monthly, then you have a definite problem.

* Using savings to pay the bills

Once you start using your savings to pay your bills, then you should start evaluating the soundness of your financial situation. It’s not limited to your bank savings alone. If you start taking out money from your retirement fund or your child’s college fund, you might be headed for trouble. Of course, there are rainy days when you may need to use these funds, but if the rainy days turn into 40 days and 40 nights of deluge, then like in the Bible, it’s a disaster.

* Job is in jeopardy

With the current economic crisis, it’s not uncommon to hear about pay cuts, reduced work weeks, and job lay-offs. If you’re constantly worried about losing your job and how you can pay your bills if you do lose it, then you might be having financial issues. Though losing a job is a tough blow for anyone, it would be almost fatal for someone who has several debts to pay. Once deprived of the primary means of income, then people with financial difficulties would have it tougher compared to those who have sound finances.

What to do with these signs

One or more of these signs can be clear indications that you do have financial trouble. Though there are times when people go through financial difficulties, they don’t happen every month. So if you’re seeing these signs for some months now, then you should start evaluating your finances.

The crucial thing is to see and admit that there’s a problem. Once you do that, you are better suited to address the situation and make better financial decisions. By knowing the symptoms, you are aware of the presence of a problem. Same with medical conditions, the earlier you know there’s a problem, the better you can prevent the situation from turning into a worst case scenario.

You can take little steps to help you manage your finances better. Curb your spending on things you don't need or postpone purchases without enough savings. Don't cause more trouble by swiping your credit card all the time.