It’s become all too common for people to suffer from a huge amount of debt, but at what point does it become a serious problem that you need to tackle? Keep reading to get familiar with the warning signs that tell you when to get debt counselling as a Canadian and begin working towards a debt-free life.
1. Late on bill payments.
Are your bills increasingly piling up one after the other? Are you finding yourself behind on making payments? Don’t let this become a regular habit – the longer you leave bills unpaid, the more you will be charged in late fees, making it harder and harder to pay them off.
2. Inability to save money.
Have you opened up a savings account but unable to keep any or very little money in there? If you want to save money but find yourself unable to, it might just be because your money is tied up elsewhere in loans and late payments.
3. Using credit for monthly expenses.
If you’re using a credit card to pay for your groceries and other necessities like fuel because you have to (not because you want the cash back) then you may be in over your head. This kind of living is nowhere near sustainable.
4. Borrowing more to pay off debt.
It’s a vicious cycle when you need to borrow more money to pay off existing loans. This is perhaps one of the most obvious signs that you need debt counselling.
5. Getting calls from collection agencies.
Does the sound of the phone ringing make you cringe? If you’re avoiding calls from collection agencies, then it’s because you’re in rough financial shape and are truly in need of help.
6. Losing sleep at night.
Money troubles are a leading cause of why people experience stress. If you’re lying awake at night thinking about money, then it’s because you have a reason to be worried.
7. Lack of a healthy budget.
Ideally, everyone should set themselves a monthly budget in order to maintain financial well-being. Budgets help you spend within your limits and reduce your chances of getting into debt.
8. Spending beyond your means.
One of the sure signs of someone in need of debt counselling is when they are consistently spending more than they make. This kind of lifestyle is unsustainable and will quickly spiral you into debt.
9. Only making the minimum payment.
Making minimum payments on your credit card every month on time will help your credit rating but it isn’t enough to pay back what you owe. Eventually, the interest will catch up with you and you’ll just dig yourself even deeper into a hole that’s difficult to get yourself out of without help.
10. Living off overdraft or a line of credit.
An overdraft or line of credit should typically only be used in the case of emergency, not for daily expenses. If you find yourself needing to dip into these financial safety nets regularly then you might just be in a situation where you need help.
Talk to a Credit Counsellor
If you can relate to any of these ten items then it might be time to get the help you need. Certified Credit Counsellors in Canada are understanding and non-judgemental, and they’ll work with you to create a plan to get you back on track.