For most people, financial problems start gradually, and get progressively worse, until you deal with them. Here are some warning signs that indicate you may be having financial problems and might want to talk to a professional about getting debt help to eliminate credit card debt or other unsecured debts.
Carrying a balance your credit cards
- Are your cards at or near their limit?
- Are you only making minimum payments each month, such that you seem to never be getting ahead of the debt?
- Do you use one card to pay another? This vicious debt cycle is an obvious sign of financial trouble.
No-one will loan you money at a good rate
- You may have exhausted all new credit options
- You may be turning to payday loans as a last resort
Another sign of financial problems are collection agent calls.
- Are collection agencies calling you regarding your debts? They seem to call at all times of the day and night. They even try to call family and friends. You can’t enjoy a night at home because the calls never stop.
- Are they threatening to garnish your wages if they do not get payment?
- Are they also calling you at work? This can mean a discussion with the boss about the number of personal calls you are getting. Now your debts are affecting not only your personal life but work and it seems like everyone knows.
Are you playing musical chairs with your money?
This is usually a sign that you’re nearing the end of your ability to cope. You might be:
- Avoiding using your bank account to deposit your paycheques because you are afraid the funds will be seized by a creditor to pay your debts.
- Taking out a payday loan or cash advance to cover your shortfall.
- Paying so much in minimum payments that you don’t have enough income to pay your rent, food and other living expenses.
Basically, you don’t have enough money to pay your debts.
If one of these signs reminds you of your financial situation, you have options regarding your debts. It won’t get better. You need a plan.