6 Signs That You Need A Debt Relief Company

For many years, countless Canadians have financial debts that need professional help. Unfortunately, most people do not recognize the need for assistance from experts who can create tailored debt payment plans for their clients. Instead, some prefer to take a DIY approach because of the stigma that comes with having financial difficulties.

There are situations where managing debt by oneself can be a success, but that’s not always the case. But how can one tell if they need the help of a professional in managing their financial debts? Here are six signs to look out for:

1. When a Person Can Hardly Handle Monthly Payments

A person who falls behind on monthly payments may already be too deep in debt. When monthly minimum payments are missed, there will be a negative impact on the credit score. Remember that missed payments have to be reported to the credit bureaus immediately. As such, struggling to pay even the bare minimum is a clear sign that help is indeed needed.

2. When Credit Cards Have Gone Into Default

This is another red flag and perhaps the biggest one of all. When the credit card’s account has been closed, the loan goes into default. This only happens when no payment has been made for the past 180 days or so that the credit card company had to sell the account to a third-party debt collection agency.

3. When Credit Collectors Call Regularly

Credit collectors do not make phone calls to chat. When debt collectors are calling non-stop, it’s an indication that the person is not making progress with debt payments. By getting professional debt help, peace of mind can be achieved as well as eventual financial freedom. Because it’s almost impossible to be in debt and not have to talk to debt collectors, it’s best for anyone to know their rights by heart or, better yet, have someone who can legally deal with the collection agencies.

4. When the Debt-to-Income Ratio Is Higher Than 43%

Mortgage lenders traditionally do this calculation to see whether or not a potential borrower is qualified for a loan. However, it’s also an excellent way to gauge someone’s current debt situation. All monthly recurring payments should be divided by the person’s monthly gross income to get the percentage. If the result is anything higher than 43%, it means the person can benefit from a professional debt consultant in Mississauga.

5. When Debts Keep Piling Up

No one can pay off all debts if they keep adding more to them. The most common culprit is spending more than what one can afford. When someone maintains this habit, it’s not hard to imagine them losing control of their finances. An experienced financial expert can create a budget plan that will help people stick to their budgets. Often, they can also offer helpful advice on handling credit card debt and more.

6. When There Is a Lack of Savings for Emergencies

When a person cannot set aside money for unexpected expenses, it’s likely that another credit may have to be taken to cover the costs for the emergency. But the thing is, it may seem impossible for some, but saving while still paying down debts is possible. Not only is it ideal so that there’s money in the bank, but also so that there will be no need to take out another loan if something unexpected happens.

Conclusion

Being deep in debt can be isolating for anyone, and many people experience financial hardships and decide to handle them independently. However, this often results in a downward spiral, especially if the person lacks strategic planning. This is where a debt helper will be helpful. By having someone look at one’s spending and saving habits from a different perspective, new and better solutions can be determined. Additionally, knowing that a seasoned financial expert uses the best tactics in their arsenal can offer borrowers some much-needed peace of mind.

DebtHelpers.ca have been helping thousands of Canadians in managing debt and gaining financial freedom. Reach out to experienced financial experts today to become debt-free at the soonest time possible!