Debt Problems Are Not Hard To Identify
Credit Counselling can provide debt help in any situation involving out-of-control debt.
A debt problem is not hard to identify. The general rule is that you are in serious financial trouble when your monthly debt payments - not counting mortgage or rent - exceed 20 per cent of your income. There are also rules of common sense. Just look at how you live. Do your money problems never seem to end? Do you often spend too much? Is it hard to pay bills? Do you have trouble saving money and keeping track of it? If "yes" is the answer to any of these questions, then you should seek credit counselling.
Just remember that most financial problems involve more than facts and figures. Debt problems often stem from bad attitudes towards money. Credit counselling helps you deal with those attitudes, as well as all the facts and figures. You may have to change your attitude towards money. That may mean waking up to signs that you have a debt problem.
Watch For Warning Signs Of Credit Problems
Debt help only comes if you ask for it. Usually, before that happens, you need to be aware of how you are mishandling your money.
You may need to face up to bad behaviour that creates money problems. The first step is to look for warning signs of debt trouble which may include:
- Using credit because you don’t have cash on hand and paying only the monthly minimum payment
- Stalling one creditor to pay another
- Charging more than the monthly amount you pay on your accounts
- Using a cash advance from one creditor to pay another creditor
- Applying for a second Visa or Mastercard at another branch
- Requesting an increase on spending limits on credit cards, overdrafts, etc.
- Taking add-on loans or consolidation loans while continuing to use your credit cards
- Borrowing from a friend or family member just to make ends meet each month