No one wants to deal with the tough aspects of life. Sometimes it is better not to think about it, or avoid it all together. This has been a constant problem that many get into when it comes to debt. They use the credit card until it’s maxed out, ignore debt bills and generally don’t bother paying it back.
So are you caught up in a similar cycle? A lot of times ignoring debt is an effect that occurs when you are cash strapped. Who would want to look at a debt bill when you are struggling to find money for daily living?
1. You are avoiding mails
When was the last time you went through the mails? Often, most debt defaulters just glance at the mail and don’t really open it. Maybe your mail box is untouched. Have you bothered opening those emails from your creditors? They probably contain bills or notices.
2. You aren’t aware of your Credit Score
It is important for a person to take a look at his/her credit report at least once a year. It is the best way to take stock of your financial situation. It gives information on the income you are making and debt you are under.
A credit score is just an accumulation of your financial situation. Anything above 600 says that your financial situation is the in right place. However, many debt defaulters are known to not even check it.
3. You’re Loan is Not Getting Approved
Lending agencies love approving loans to those who have a high credit score and are financially responsible. A rejection points out that they found something unsatisfactory with your finances. Chances are that they feel your finances can’t handle the loan or you won’t pay back the debt on time.
4. You don’t get the Job
Ever felt that the job you tried out for was perfect. You carried the perfect credentials and the interview went very well, but you weren’t able to qualify for it. It could be because your potential employees took a look at your credit report. This is a common practise in many organisations. They want to ensure people are responsible with money.
A person with high debt is seen as a liability who has or will have financial problems and won’t be able to perform well.
5. You are not paying the Debt
This one is pretty much obvious. You use the credit card every month and for that, you have to pay back the money with interest. Paying on time is very important. It improves your credit score and often, you get access to perks for paying on time.
However, if your finances are strained, then debt will take a back seat.
6. You are contacted by a Collection Agency
This is as far as your debt avoidance goes. Once a collection agency contacts you, you can’t ignore it. Chances are that you have been avoiding your debt for too long, hence a collection agency has finally contacted you. A collection agency could start harassing you or even take you to court.
Ignoring your debt is not going to make it any better. Start dealing with it.
