We tend to overspend now and then, like during the festive season, so it can be difficult to tell the difference between an over-spender and a compulsive spender.

Compulsive spenders generally find the idea of spending money irresistible and the problem escalates over time. If you think that you are prone to overspending or spending irresponsibly, to the point that it's caused you to go into the debt, then it may be time to reconsider your spending habits and find a way to pay your debts.

Warning signs of compulsive spending:

1. Accumulating a lot of debt.
2. Wasting a large part of your salary on purchases you don't need.
3. Hiding things you have bought from your family or lying about new purchases.
4. Relationship problems due to overspending.

Warning signs of overspending:

1. Continually borrowing money from friends and family.
2. Paying the minimum on credit cards.
3. Paying your accounts late.
4. Withdrawing money from investments to cover short-term expenses.

Recognising you have a problem with money is the first step to getting out of debt.

Steps to finally deal with debt:

1. Make a list of all outstanding payments
2. Determine your debt to income ratio.
3. Choose a debt repayment strategy.
4. Speak to creditors and make an arrangement if you are struggling to make payments.

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