Debt Helpers – How to Know If It’s Time to Get Help of a Professional for Debt

Often, people are already too deep in debt before seeking the help of a professional. Why is this the case? For one, many fear that getting the help of professionals will cost a lot of money, adding more financial strain to an already challenging situation. Another reason is that many do not know what to expect from a consultation with a financial expert. Many have a false belief that financial experts will only force borrowers to follow a solution that may not be the right one. While that apprehension is valid, it’s imperative to know that there is no reason to be afraid to seek professional help if one is already having difficulties handling debt. 

But the question is, when is the right time to seek professional help from a financial advisor?

Debt Helpers will say it now – it is never too early to get help. In fact, the sooner one asks for help, the more options are available to solve the problem and help begin a person’s financial recovery. 

What if one still has second thoughts about reaching out to a financial advisor? Here are some telltale signs that it’s time to seek professional help for an accumulating debt:

The Amount of Money Owed Keeps Growing

Many people in debt feel like the money owed keeps growing despite all the efforts to pay it off. For every step taken forward, two steps back are made as the balance keeps going up even after making a considerable payment. A borrower might feel like no planning and budgeting ever works. If this is what a person in debt feels, then the time has come for a professional financial advisor to be called, as this is a clear sign of unmanageable debt. 

Debt Is Used to Pay For Basic Expenses

Credit can indeed be a useful tool, especially when used to invest in an appreciating asset like a real estate property or to pay for one’s education. When utilized responsibly, credit cards can provide convenience and many perks like cashback, discounts, and more that can make purchases more cost-effective. However, it’s easy to forget that credit is not supposed to be one’s means to cover basic living costs. It could be disastrous if one relies on credit to pay for monthly recurring expenses such as utilities, rent, and more. 

If one finds it impossible to pay for basic expenses without using a credit card, it’s already a huge problem, and a professional advisor can help sort the problem out. 

Bills Are Never Paid on Time

Apart from the growing amount of money owed, the payment due date is another big factor that has to be watched closely. Late and missed payments both register as delinquent on a person’s credit record. Not only is this a red flag to future lenders, but also often comes with higher interest rates, late fees, and long-term damage to one’s credit history. 

A person struggling to make payments on time should consider approaching a financial advisor to be guided on what changes could be made to improve the situation. 

Debt Collectors Are Calling All the Time

Anyone who misses a payment due date can expect a call from a debt collector. Often, this call is made within five business days of a failed payment. If someone is getting calls from a debt collector on a regular basis, it means professional help is already needed to manage that person’s debt. 

After multiple attempts to contact a person with debt, the account will be turned over to a debt collector who will make more frequent calls, send letters, or even visit every once in a while in person. The borrower is expected to pay the outstanding balance, interest, and penalties because of the late payment. 

Conclusion

One should not wait until the situation is dire before contacting a professional who can provide debt relief and helpful advice. Getting professional help should not be a last resort but an action taken before things get worse. 

Debt Helpers offers debt relief to all Canadians looking for solutions for growing debt. Get in touch with Debt Helpers to find out more about the services and solutions offered!