7 Signs That You Are Near Financial Ruin
The ostrich syndrome is a reality a lot of people face and it is especially seen when dealing with one’s financial situation. Just ask yourself, “How many times have I avoided opening a credit card bill?”
What is Ostrich syndrome? -are you feeling like you are burying your head in the sand and refusing to acknowledge the problem even though it is blatantly obvious?
You realize, or you have an inkling, that your financial situation is headed towards dire straits, but you’d rather not think about.
Well, here are the signs that you are inching closer to financial ruin.
1. You are making minimum payments for more than 6months.
If you are making minimum payments on your debts then it is a cause of extreme concern. Minimum payments do not reduce the debt load. Once a person falls into minimum payment category, he cannot come out of it unless he wins the lottery or gets an inheritance. So if you are making minimum payments, STOP, and take Professional advice.
2. You are missing your payments
Paying late or completely missing your debt payments is the first sign that you are headed to financial ruin.Debt payments generally include loans, credit cards, etc. When you start missing your payments, the debt piles up.
This point is not only true for your debt. Take a look at the other bills that are lying around. What about your electrical and other service bills? Are you paying them on time?
3. You keep Getting More Credit Cards
What happens when you max out your credit card? Do you go and get another one? And what if you max out that one too?
Having an ever increasing bundle of credit cards is a clear sign that your financial situation is completely dependent on credit. Credit is not actually money, it’s just borrowed money which you have to pay back with interest.
4. Financial Fights with your Partner
How much of money do you borrow from your partner and how often? The first persons to notice your messy financial situation is your partner. He/she could accuse you of borrowing too much money, not returning it back, ignoring your debt bills, etc.
5. A Credit Score Below 500
Your credit score is a very good indication of how strong your financial situation is. Get your credit report from Equifax or TransUnion Canada. Take a look at your credit history and review your debt. Have you been able to stay on track with your debt payments?
6. You are Being Harassed by a Collection Agency
A collection agency can be quite annoying. If a collection agency is calling you up, then it is a clear sign that you have been caught in a debt sinkhole. You have completely ignored your debt to a point where the lender has asked a collection agency to get it back.
7. Expect some Sudden Windfall or Financial Support
In the back of your head, do you imagine some sudden windfall that will fall on your lap and take care of your financial woes? Do you expect your partner or a family member to lend money? This could very well be an illusion and you shouldn’t depend on your partner, family or an unseen force to pay for you.
As much as you feel like burying your head in the sand and ignoring your approaching financial ruin, you can’t. The fact that you’re reading this article shows that you are willing to tackle it. All you need is the right support. 4 Pillars Debt Consultant is highly experienced to help you regain control of your financial situation.