Debt Problems Are Becoming Increasingly Common
Personal debt loads getting out of hand are increasingly becoming millstones around consumers necks. If you find yourself in any of the following situations listed below, it’s time to engage with a debt counsellor. Debt-911 has a range of innovative debt reduction strategies that can be tailored to suit your specific financial situation
The warning signs are easy to identify:
- You have maxed out your credit cards
- You run out of money between paydays
- You get calls from debt collectors
The early warning signs however are more difficult to recognise and its worth knowing what hey are.
The following early signs of potential future financial distress are worth knowing and can help one take action before one’s circumstances and one’s options become grim.
One’s debt to income ratio measures how much of one’s income is used to pay off debt. A ratio greater than 20% could spell disaster. This ratio is easily calculated by simply dividing the total of one’s minimum monthly debt payments ( excluding your housing payments) by your net monthly income. Using more and more of one’s income to pay off debts could land one in trouble should an unexpected event occur requiring unforeseen financial commitment.
Managing Credit Cards
Credit cards used to pay for necessities such as groceries and to settle municipal accounts will very quickly land one in trouble, unless one pays the entire balance on one’s credit card monthly which means one does not pay finance charges. If balances are carried over however and interest and finance charges are levied on basic food and housing costs it is clear that one’s lifestyle may not be financially sustainable.
Timing one’s monthly debt payments for the last possible date is a clear sign of trouble, especially if one finds oneself paying bills later and later. Waiting until the next month’s statement is received before one makes a payment is an ominous sign of impending financial trouble.
If you are beginning to feel the pressure of having to deal with your financial affairs and would like unbiased, no obligation advise, please feel free to call us, complete and submit the form alongside or SMS Help to 40935 after which a trained Debt-911 debt counsellor will contact you to assess your financial situation.