Professional hep’ – this is a word many shy away from, but sometimes it does not hurt to reach out for professional help. Taking help in a moment of weakness is a strength which you should use. Everyone has their expertise and the financial world may not be your cup of tea. When things start getting out of hand, professional help will help get things in order. So here are signs that point out you’re in a bad place and need help.
1. Income-Debt Ratio
As you use credit, there will be an income-debt ratio created. This is basically the difference between your income and debt. If you’re debt is even more than 5 times of your monthly income, you are in trouble. This is a clear sign that you’re incurring debt you can’t pay off.
2. You have no Clear Understanding of Investments
You have probably made a few investments to increase your income. How aware are you of them? Not being aware of your investments is a sign that you are losing tack of your financial situation.
3. No Financial Future Plans
A financially healthy person always has an idea of their future plans. This dictates what they want to do with their money and how to double it. If you have no future plans, a financial expert will help you out.
4. Your Credit Score is Low
A low credit score is a direct indication that your financial situation is in turmoil. depending on who you talk to, there are different views on what an low credit score is. According to us if you are not able to qualify for an good intrest rate mortgage or loan, then the score is low. So we could consider and low credit score as anything below 600. Your credit applications were probably rejected because of a low credit score.
5. Your Spending More than You can Afford
This is a clear sign that you are straining your financial situation. It is worse if you’re overly depended on credit cards because you don’t even have that money yet. Spending more that you can pay back is a dangerous way to get into a debt hole.
6. You Been Denied a Credit Card or Loan, Multiple Times
Have you been fruitlessly trying to get a credit card application through, but keep getting rejected by many lender agencies? Either you don’t realise the problem or you are not able to correctly fix your financial situation. This is a sign that your financial situation is so bad that no one is willing to lend you money.
7. You have no Idea of your Debt
This is a clear indication that you need financial help. You are probably avoiding the debt figure so you don’t carry any emotional baggage of being worried about it.
8. Debt Collector is Calling
If a debt collector starts calling you, then you have defaulted on your loans or credit card bills too many times. You can only ignore those bills so much.
9. Bouncing Cheques
If you’re getting calls that your cheques are bouncing, then it is a clear sign that your account is empty and you don’t have money to pay your bills.
10. Have No Idea where you Money is
This is the worst sign and you need to pick up early on it. Your money could be disappearing because of excessive spending or a debt hole which sucks it up.
‘Professional help’ is just another word for a financial expert. He/she understands the ins and outs of the industry. With a bit of re-structuring and advice, you can salvage your financial situation.
