4 Tell-tale Signs You Have Serious Debt Problems

Debt problems will slowly creep up on anyone when they least expect them to, especially since they don’t just brew overnight. Debt is often accumulated after a few weeks and months, and slowly, financial trouble will be knocking at their door. 

However, having debt isn’t what any of us want and could be triggered by a job loss or if one of our assets requires repairs or replacements. In other cases, debt can collect over time due to big purchases, which could spiral out of control, making it difficult to manage.

For this reason, people dealing with debt will most likely get professionals to help iron things out before things get any worse. With the help of debt consultants, a person will obtain customized solutions that will help put their finances on track, empowering them to eliminate their debt.

How to Identify Debt Problems?

Most people are unaware that they’re dealing with debt problems until it’s too late. With that, it’s important to know the different signs that tell people they’re swimming in debt.

Sign #1: Only Making the Minimum Payment on Credit Cards

If a person regularly pays their credit cards in full, then they’re probably debt problem-free. But if they pay the minimum payment monthly, then chances are they’re headed for trouble. Unfortunately, many think that paying the minimum amount is all they need to do. But truthfully, it’ll take much longer to pay for credit debt when small amounts begin to pile up. 

So if one plans to use a credit card to make big purchases, they must ensure that they are capable of paying for the item. Even if it’s an installment payment, they should be able to pay the installment amount monthly, without waiting for it to pile up.

Sign #2: Getting Regular Collection Calls

If one has been missing multiple credit card or loan payments, they’ll most likely get calls from a debt collection agency to recover unpaid debts. If they’ve been avoiding these calls and getting them more often, these individuals are most likely dealing with debt problems.

Working with debt consultants can help mitigate the problems since they’ll be able to review an individual’s financial standing, providing them with actionable steps that can help them pay off their debt. These steps may include adjusting monthly expenses, building savings, and even setting aside money to help pay for debts, even in increments.

Sign #3: Rejected Credit Card or Loan Applications Due to Bad Credit

One’s credit score plays a huge role in whether they’ll get approval for their loans or credit card application. If they get a loan but the terms are quite poor, chances are they’re considered high risk, and their credit isn’t good.

With that, it’s critical to take note of credit behaviour and to instill good credit habits. By doing so, individuals with good credit will have more chances of getting credit card and loan approvals.

Sign #4: Money Problems are Affecting Relationships

If one is starting to feel the impact of debt emotionally and physically, there’s a huge chance that they may be dealing with major debt problems. Those dealing with debt are often more anxious, irritable, depressive, and have no control over their relationships. 

That’s why it’s recommended that individuals take proper steps to control their finances when they’re starting to feel a tiny bit anxious with their money. This way, they’ll have more space to mitigate risks and prevent bigger problems, which often result in bigger debt and issues within relationships.

Ask Help From a Credible Debt Consultant

There’s no denying that people can get confused about their financial health, and most often than not, they’re unaware that they’re swimming in debt problems. In that regard, it’s always a good idea to speak to a debt consultant to build a financial strategy, putting one back on the right financial footing. With a customized plan, one can help manage their money, build financial security and safety net, and eliminate debt once and for all.

Conclusion

Dealing with debt can be overwhelming, and at times, people tend to disregard them and push them under the rug. However, these issues can accumulate, giving anyone bigger and more pressing problems in the future. Fortunately, we’re here to help. 

DebtHelpers.ca create debt solutions for Canadians and offer consulting services and customized debt solutions to help individuals reach their goal of becoming debt-free.

Looking for a reliable debt consultant in Canada? Connect with one of our consultants today!