4 Signs You Need Support With Your Debt Problem

Written By Alla Levin
November 24, 2021
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4 Signs You Need Support With Your Debt Problem

Many of us are in some form of debt to a bank, credit card company, or another loan provider. Provided these debts are manageable, and we can pay them off in good time, our lives shouldn’t be affected too badly.

However, there are times when debt can become a real problem in our lives. You may appreciate this already, especially if you relate to the following. If you do recognize these signs in your own life, then now is the time to seek support from a debt charity, a financial advisor, or any form of a debt relief professional. 

You aren’t sure how much you owe

If you don’t know how much you owe, it could be because you haven’t looked at your credit statements recently. On the other hand, it might be because you struggle to understand interest rates, and as such, you won’t know exactly how much you will have to pay back to your creditors. 

In such instances, you need to get on top of things by digging out your statements and doing the maths or asking your creditor(s) for an exact rundown of your remaining payments. Seeking advice from a financial professional is also advised if you struggle to crunch the numbers.

Debt collectors are on your caseadvantages of a Consumer Proposal

Debt collectors have a job to do, and that job is to retrieve the money you owe to your creditors. If you cannot pay them the money they are asking for, it might be time to sell some of your assets to pay back what you owe. You could also speak to your creditors for alternative arrangements, perhaps an extended payment plan. If none of these things are possible, the situation could escalate, perhaps with a lawsuit made against you. 

You want to avoid these situations. One way to do this is to consider the advantages of a Consumer Proposal, as this is one way to protect yourself from debt collectors. You will also agree with your creditors to pay back what you realistically can, even if it’s not the total amount of your debt. Check out the link to learn more. 

You are draining your savings

Your savings should be there for your retirement or the more incredible things you aspire to do and own in life. Generally speaking, they shouldn’t be there to pay for your debts, as you will then lose the money you have secured for your goals. But if you are draining your savings to pay back your loans, you need to consider other ways to manage your situation. 

For starters, you could consider debt consolidation if you have multiple loans, as this could make your situation easier to manage. You could also try to increase your income, perhaps by selling items you don’t necessarily need, taking on extra work, or by finding a side hustle. You will have less need to draw on your savings by considering any of these options. 

You are constantly borrowing more moneyborrowing more money

If you cannot pay back your debts alone, you may be reliant on other forms of help. Invariably, these will include other bank loans, new credit cards, cash advance loans, and money from friends and family members. If you borrow money from people you know, you shouldn’t have to worry about interest rates when arranging to pay them back. However, if you borrow money from other places, you will incur interest, which could be pretty high if your credit rating is poor. 

Ask friends and family members to help, by all means, providing they are happy to help and are in a financial position to assist you. But when it comes to actual loan providers, stop borrowing before it all gets too much for you.

Debt will start to overwhelm you if you don’t, and you will get into that vicious cycle of forever taking out more loans to pay off the other debts you owe. Seek debt relief help as soon as you can from anybody qualified to help you, and check out our debt advice here for more information. 

Support with your debt problem: Finally

Admitting you need help with your debt problem is the first part of your journey out of debt. So, while you should do what you can to manage your finances, don’t be afraid to ask for support from people in your area that can help you. By doing so, you will put yourself back on the path towards financial freedom and debt-free life.

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