Are You Drowning In Debt?

Posted in Debt Help

Sometimes the best way to picture something is with a comparison. Our infographic helps put a picture on the stages of debt struggles. Find out how at risk you are of drowning in too much debt.

Debt Assessment - Risk

Stage 1: Going for a Swim

At this level you have some unsecured debt. You may carry a small credit card balance, have a car loan and may not always pay off your credit card debt each month. You overspend here & there or have hit an unexpected wave like a car repair or paid for a vacation or furniture on credit.

The solution: Create a household budget, get your spending back under control and pay off high interest debt before the debt waters rise even further.

Stage 2: Treading Water

Your credit card debt has increased making it harder to pay down the balance. You are only making partial payments each month and are spending a larger portion of your income on debt repayment. You've continued to live beyond your means and used credit to make up the difference.

The solution: If you still have good credit, refinance and consolidate your debt to a lower cost loan options. If not, consider a debt management plan. Both can offer a life jacket to help you tread water while you repay your debts.

Stage 3: Drowning In Debt

You now have more debt than you can repay. You've maxed out your credit cards and may be turning to high-cost forms of credit like payday loans. You continue to use credit, and likely have multiple credit cards. You can't afford to repay all of your debts any longer.

The solution: If you have assets and a good income a consumer proposal may help you get out of the deep waters. As a final option, consider declaring personal bankruptcy.

If you are struggling in an ocean of debt, contact us for a free debt assessment. We can help you determine what stage you are at and what options will work best for you to get your feet back on dry land.

newsletter signup

Signup for our newsletter

Subscribe to our quarterly newsletter to get tools, tips & advice to help you rebuild your finances.

Please enter valid email

You can withdraw your consent at any time by using the unsubscribe button at the bottom of any Hoyes Michalos newsletter. We value your privacy.

Leave a Comment

Your email address will not be published. Required fields are marked *

two − one =