Signs that you May Need Help from a Debt Management Program
Many people find themselves with high levels of debt. Collectively, Canadians have record high debt levels. Large amounts of debt can lead to serious issues. But how much debt is too much? While you may be able to responsibly carry and handle a reasonable amount of debt, having too much becomes tough to manage and you can very quickly find yourself in trouble.
So how do you know if you’re holding too much debt? How can you determine if you’re on the path to debt trouble? Can you help your situation? And how?
Professional debt management services are available for people who have high levels of debt that they can’t escape from. But how do you know if you need these options? Here are a few signs that you might need help with debt management.
Debt Management Warning Signs
Every person is different and every debt situation is different. However, here are a few common warning signs that you may have an issue with debt management.
You Can Only Make the Minimum Payment on your Credit Cards
Making only the minimum payment can be incredibly costly. You may think that you’re handling your debt because you never miss a payment, but only paying the minimum isn’t helping your financial situation. In fact, it could be hurting you. Thanks to the fact that many credit cards have very high interest rates, making only the minimum payment means that it will take many years to pay off your credit card debt. In the time it takes you to pay it back, you’ll pay a lot of interest as well. This hurts your financial situation as you’ll end up paying much more than you need to for your expenses.
If you’re in a financial decision where you can only afford to make the minimum payments, you might require help debt solutions.
You Rely on Credit to Pay Basic Expenses
If you need to put purchases on your credit card in order to make ends meet, you might want to get help with debt management reduction. If you’re in a situation where you can’t buy groceries, pay rent or meet your other monthly living costs without using your credit card, you’re either spending too much or you don’t have enough income to handle your expenses. Either way, you probably need some assistance at figuring out how to improve this situation.
You Use Loans to Pay Other Loans
If you’re taking out a loan to cover the cost of another loan, you could very likely be in financial trouble. For example, if you use your line of credit in order to pay off your credit card, you might save some interest, but you’re not lowering the overall amount of debt that you have. If you’re in a situation where you need to do this regularly, you will very likely keep getting deeper and deeper into debt as your expenses add up every month and your level of debt never really goes down.
You’ve Missed Payments
If you’ve missed debt payments because you haven’t been able to afford to make them or because you have so much debt that you forgot what bills you have to pay when, you might in in trouble and need some guidance. Missing debt payments can hurt your credit rating and make it more difficult for you to get a loan in the future. Plus, you’ll end up paying more in the long run due to interest charges and late fees.
You’re Getting Calls from Creditors
If you’re at the point where you’re receiving calls from creditors or collection agencies, you could need help debt advice. These calls can be frustrating, stressful and difficult to deal with. By seeking professional debt management help, you can get these calls to stop and improve your financial situation for the future.
Debt Management Help from a Trustee in Bankruptcy
If any of the above apply to you, you could benefit from professional debt management. Dealing with debt is tough, but the good news is that you don’t have to do it alone. There are options available and people who can help you.
One option is speaking with a trustee in bankruptcy. This is a person who has been licensed by the federal government to help people who are struggling with debt and provide them information about the options available to them. Many trustees offer free consultations where you can sit with them and have them review your financial situation. They will show you the options available for debt relief and debt management plans Canada. These options could include a consumer proposal or bankruptcy, depending on your particular financial situation. A trustee can give you detailed information on these options and help you determine if any of them are right for you.