WARNING SIGNS OF FINANCIAL DIFFICULTIES
While having debt is normal, it is very easy to find yourself with an unmanageable debt load. Most of the time, we miss the warning signs of financial difficulty and by the time we realize it we are in too deep. Being aware of some warning signs can help you prevent getting trapped in a financial crisis.
It takes a lot of awareness to accept the fact that your debt is getting out of control. There are a variety of signs that can indicate a high and dangerous debt load. In this blog, we discuss 3 signs that are strong indicators that you might be on your way to financial distress.
Be aware of these danger signs and do not wait until the situation gets out of hand.
1) You are regularly falling behind or missing payments: One of the first signs that can indicate you may be headed for financial hardship is if you are unable to pay your bills in a timely manner. When dealing with multiple debts, it is very easy to miss due dates, or miss payments altogether. While overlooking or paying the occasional bill late might happen to many of us, if it happens all the time, or if you regularly bounce pre-authorized payments or cheques, it can indicate that you are experiencing financial difficulties.
2) You are only making minimum payments for your credit cards: It is easy to think that your credit card debt is under control as long as you are making the monthly minimum payments. However, this can indicate that your debt is growing and at risk of becoming unmanageable. When the majority of your income is going towards minimum payments, it may be a sign that your debt is more than what you can handle. If you are having a difficult time even making the minimum payments, it could be time to get professional help to deal with your debts.
3) You don’t exactly know how much money you owe: Do you know how much you owe? If your answer is “No” you are not alone. Many consumers tend to underestimate their debt thinking they owe much less than what they actually do. Losing track of your total debt load is a warning sign of a financial crisis. This might be a result of denial, or due to a huge debt load, or even both. Not knowing your debt balances can cause various problems in the future. Try to keep track of your monthly expenses and payments so you know your total debt at the end of each month.
4) The majority of your debt load has gone to collections: Being overwhelmed with collection and past-due notices can be a red flag too, and it requires prompt action before creditors take further legal action.
If you feel your debt load is too much to handle and you are overwhelmed by your current financial situation, we are here for you. At Sheriff Sole & Madej Inc. our commitment is to find the best solution for you. Call us at 1-844-482-3328 to book a free confidential consultation and learn more about Consumer Proposal and Bankruptcy. We offer services in 12 convenient locations throughout the Greater Toronto area with staff members that speak over 7 different languages.