Monetary Woes – The Telltale Signs of Financial Troubles

The Covid-19 virus has had a profound consequence. It changed how we interact with each other and the world and has impacted the economy and lives. The pandemic forced people to re-assess their priorities and lives. 

Undoubtedly, the pandemic brought a significant impact on health. The virus claimed many lives. It has also had a substantial effect on mental health. Living through a pandemic has taken a toll on people’s emotional well-being. 

The economic impact has also been severe. The unemployment rate has skyrocketed, and the stock market has plunged. The pandemic has also had a significant effect on the housing market. Home prices have dropped, and the number of foreclosures has risen.

This article has tapped the expertise of debt consultants to determine if one is on the path to financial trouble. Here is what they have to say:        

Could Only Afford Minimum Payments for Credit Card Debt.

Many cannot afford to pay more than the minimum payments on their credit cards or line of credit each month. Doing this may cause problems down the line because they are only paying the interest and do not make any progress on paying the credit card debt. 

If this is the case, one should consider speaking with a credit counsellor or financial advisor. They can help individuals create a budget and devise a plan to pay down their debt. Remember, the sooner one gets out of debt, the less interest one will have to pay.

Spending More than One Earn.

It is no secret that many spend more money than they earn. It is so common that it has become almost normalized. There are many reasons why people are in this situation. 

All debt consultants agree that spending more than one earn is a dangerous habit. It can lead to a lot of financial problems down the line. If one spends more than one is making, it is necessary to take steps to change these problematic habits. Otherwise, one could find one’s self in a complicated situation.

The Need to Borrow Money to Pay Loans.

When an individual struggles to make ends meet, it can be tempting to borrow money from loans, credit cards, or a line of credit to pay one’s bills. But this is a risky move that can cost the person more in the long run. 

Once people start borrowing money to pay their bills, it can be challenging to break the cycle. One may be tempted to take out more loans or use credit cards more often, which worsens their financial situation.

Other options are available if one struggles to keep (financially) things afloat. Talking to creditors about payment plans or negotiating for lower interest rates is highly advised. Individuals can also consider government assistance programs or speak to a non-profit credit counselling agency.

Conclusion

There are several signs that an individual’s finances are headed for trouble. These signs include: accruing more debt than can be quickly repaid, missing credit card or loan payments, using credit cards for everyday expenses, and withdrawing money from savings accounts. If an individual is experiencing any of these signs, it is essential to take action immediately to avoid financial ruin.

If you find it hard to regain your financial footing, you do not have to fret because you can ask for help from Debt Helpers. As debt consultants, we can work on establishing better financial health. So, contact us now for more information!