Do you have too much debt? Not sure what your options are?
If you are wondering if you have too much debt or are feeling anxious about it, you likely do, and you are not alone. Statistics Canada reports that there is $1.79 in debt for every dollar of disposable income. Having too much debt can lead to other difficulties which include struggling to pay your bills, being unable to save any money, and causing problems in your relationships. It can sometimes feel like a cycle that never stops moving. Here are five signs that indicate you have more debt than you can handle:
After paying your monthly bills, you have run out of money.
When you’ve paid all your monthly household bills and debt payments and you’ve got nothing left for the necessities like groceries. At this point, you need to either reduce your expenses or increase your income as you don’t have sufficient resources to sustain your lifestyle.
Using one credit card to pay the minimum on another.
You pay your rent, your cell phone and other monthly bills only to find that you don’t have enough to cover the minimum payments on your credit cards. Having to resort to a cash withdrawal on one to make the minimum payment on another is hard place to be. It’s very difficult to recover financially if you’re having to do this over and over just to stay afloat.
Receiving collection calls or letters.
You’re afraid to answer the phone or open your mail as the threats from collectors are very stressful and you don’t know what to say to them. Just remember that collectors can sue you and if you are ignoring paperwork, they may end up with a judgment for the debt that will allow them to garnish your wages and/or bank account.
You’ve had to reach out to friends, family or payday loan companies to borrow money to pay bills. Unless this is a one-time issue, borrowing to pay bills starts a cycle of always being behind the next payday before you even pay anything. This often results in borrowing again and again.
Stress is causing you to lose sleep.
When you are constantly worrying about paying bills, juggling your income to pay your expenses, the stress can be overwhelming and can keep you up at night and cause health problems.
If any of these signs sound familiar, the first step should be to acknowledge what you owe. Make a list of who you owe money to and the amount. Make a second list of your monthly income and household expenses. Figure out what amount you have left over to repay your debt and make a plan.
That plan should include seeking the advice of a professional. At D. Thode & Associates Inc. our Licensed Insolvency Trustees are trained to assess your financial situation and provide you with the statutory (legislated) and non-statutory options to deal with your debts.
Once you have been provided with options, you can rest easy and know that you can tackle your financial problems and have a fresh financial start.
Call D. Thode & Associates Inc. today for a free consultation.