Being in debt can be stressful. It not only wrecks your financial health but also affects work and relationships. The battle against debt is not easy, especially when you have no idea how to figure your way out of the financial turmoil. The first step is to identify that you need professional help to solve your debt troubles. Here are the tell-tale signs that you need debt consultation.
Problems in payment
The most common reason of debt is not putting in the monthly payment. Though you are paying bills on time, you often run out of cash between paychecks. You don’t know how much you owe others. You are frequently paying the bills after the due date. Sometimes, you borrow money from others to pay off your bills. Frequent arguments with your family regarding the money problem are causing you a great amount of stress and bounced pay checks have become a frequent problem.
The credit troubles
You are spending more than 20 percent of your net income on credit card bills. You find yourself using your credit card to pay for necessities because you don’t have cash. You carry more than 2 credit cards and use an advance from one credit card to pay the minimum amount on another card. Any kind of credit card overusing is a bad sign.
You find yourself turned down for a consolidation loan owing to your high debt ratio. You are refinancing a loan to reduce your monthly payment. You have been visited by a bailiff and frequently receive calls from collection agencies.
You are facing a creditor’s lawsuit, insolvency, repossessions and your wages have been garnished. You feel harassed by your creditors and regularly ask friends and family for loans. You have mortgaged or sold off your property to pay them back.
You are broke
You find yourself cutting down your utilities like telephone, electricity to make the ends meet. You are considering taking up a second job to pay off your debts. Your debt problems are causing a considerable amount of stress and your family and professional life is getting affect. You are using your savings or more credit cards to pay your daily expenses. There is no or minimal saving left, you are bankrupt or close to it.