If you struggle when it comes to handling your financial affairs don’t feel bad… you aren’t alone.
Financial problems are one of the most common issues people face, and in many ways society has built a very effective system that makes it easy for people to find themselves dealing with unmanageable debt levels.
The first step to reducing or even eliminating ongoing personal debt is paying attention to the warning signs that indicate things are going in the wrong direction for you.
Here are five signs that indicate your money issues are getting serious and that you may want to consider reaching out to a Licensed Insolvency Trustee for a free, no obligation consultation.
1. Falling Behind on All Your Payments
Are you struggling to stay on top of your regular utility bills and your existing debts?
Do you find that you are unable to make the required payments by the due date, or even falling weeks behind?
When this happens, a couple of problems arise, both of which will quickly make your financial situation deteriorate even faster.
First it negatively impacts your bank account, because your lenders will often apply penalty fees and interest which reduces your available money.
Second, late payments can affect your credit score.
Many people are unaware that when you make late payments your lenders often notify the credit bureaus. This can make everything from getting loans more difficult and the interest rates you pay for borrowing increase.
2. Trying to Use Credit for Bills, Living Expenses and minimum payments.
When you are short of cash and unable to pay for things, you might find yourself turning to your credit card to purchase your necessities.
While this solves the problem in the short time, in the long term you are just increasing debt, further exacerbating your financial problem because after thirty days, credit cards start charging extremely high interest rates.
Now you will find your debt is starting to increase much faster, often causing you to start borrowing from other credit cards to pay the maintain your ever growing debt.
3. Going Through the Payday Loan Cycle
Payday loans are great… for the payday loan lenders!
While payday loans offer the short term perk of allowing you to obtain immediate cash you can use for your bills, they give you almost no time to pay it off, and much like credit cards, they also charge very high interest rates.
Now you’re now stuck with another debt on top of the one you covered with the loan.
If you have ever found yourself getting a payday loan, this is a massive red flag that you should reach out to a Licensed Insolvency Trustee for help.
4. Accumulated Debts in Collections
No one wants their debts sent to a collections agency.
Beyond the impact to your credit rating, collection agencies are often aggressive in their approach to get your payments. You can find yourself in a situation where collection agents contact (harass) you and your family, employer, and even neighbours!
If you have found yourself in a situation where a creditor has sent your debt to a collections agency, it again is a strong indicator that your finances are moving beyond your ability to solve on your own.
5. Financial Stress and Anxiety
Are you constantly stressed and anxious about your debt?
Do you go to sleep thinking about financial problems and wake up thinking about them?
When financial issues become one of your primary concerns, and start to impact your mental well-being and even your productivity, you absolutely need to reach out for help from a professional Licensed Insolvency Trustee.
Once your debt starts to get away from you, it can be extremely difficult to get it back under control.
If you have found yourself dealing with any of the above five points, you may be slipping into a cycle of debt that is very difficult to escape. The sooner you consult with a professional the better as each day you delay will only serve to put you further into debt, making your situation worse.
In London Ontario, Paul J. Pickering and Associates is a Licensed Insolvency Trustee that offers real debt problem and elimination solutions in Canada.
Call us today for a no obligation, no cost consultation. 519-672-2494