Debt is something that plagues many people, and affects everyone. Even if you feel comfortable in your financial life, there is a good chance that you personally know somebody that has fallen prey to the vicious trap known as financial debt.
Anyone is susceptible to it, and it really begs the question, “When should I begin worrying about debt?” In this guide, we will discuss five warning signs that say you should look into debt counselling.
1. Misunderstanding Your Situation
When is the right time to begin worrying about debt? How deeply in debt should you be before you should take action? To put it simply, the answer is as soon as possible. Some people have this idea that their situation isn’t that bad, which is an incredibly dangerous mindset to have.
Debt can be summed up in many ways. A wildfire that starts suddenly and envelopes everything in it’s path quickly. A snowball that begins rolling downhill, gaining speed and size as it goes. The point being that debt starts small, and quickly grows out of control in a very short amount of time. Therefore, you should try to fix your debt as soon as you notice it, as it will not magically go away if you ignore it.
2. Missing Payments
Think of debt as a juggling act. In order to hold two items, you toss the other ones up in the air before catching them. With debt, you may find yourself paying certain bills while allowing the others to be late. This is in no way a good sign, as most bills build interest with every late payment, which only increases your debt and makes the situation even worse. As soon as you see that your income is unable to cover your bills, then you should consult a debt counselor.
3. Poor Spending Habits
Some people simply are not great with money. There is nothing wrong with that, it simply means that your mind is not hardwired for that aspect of thought. This shouldn’t give you an excuse to go into debt, though. Excuses fix nothing while consulting a debt counselor, who will help you manage your spending habits will help significantly.
There is absolutely no shame in asking for help, as that is what debt counselors are for. You must be willing and committed to taking their advice, though.
4. Multiple Debts
Going back to the juggling analogy, there are some things that you need to catch more than others. For instance, your home is often more important than transportation, while transportation may be more important than utilities.
If you simply do not know which should come first, you should consider a debt counselor. Your counselor will help you devise a strategic plan that will eventually lead you away from debt and into prosperity.
5. Not Understanding how Debt Management Works
As was said earlier, some people just are not designed to understand debt and finances as well as others are. You can’t expect to conquer something that you don’t understand. If this is you, then consulting a debt counsellor can help you move mountains. The counselor may be able to negotiate with your creditors, setting up a collaboration in your favor that takes a heavy load of stress off of your back.
Anyone who has suffered through debt knows that the stress that comes along with it is an unhealthy nightmare, so consulting a debt counselor is by far the most responsible thing to do.