8 Indicators You’ll Need To Undergo Debt Counseling
Managing your finance is never easy especially if you’re and impulsive buyer and surrounded by a lot of temptations. That is why a lot of people are trapped with debts and ruined their financial state. Even the “drowning in debt” is coined to specify how bad the situation is. It’s hard to make it up and pay it off alone that’s why debt counseling services are on the rise.
Debt counseling aims to understand your financial goal so that you can be empowered to resolve your financial issues. It usually depends upon the person and how they handle money. There are people who has $50,000 unpaid credit card debt and doesn’t even care, while there are some who has a $1,000 unpaid bills and hardly sleep at night.
Here are some warning signs that you need to consult a debt counseling agency:
1. You borrow money to pay other debts
For instance, you borrow a personal loan from other banks to pay off your credit card bills. You borrow from other banks because for sure, your credit card company will not loan you because of your record. This is a bad situation to be in because you allow multiple compounding interest coming your way. Interest is bad, compounding interest is worse, compounding interest from multiple banks is the worst. Sooner, you will be out of funds. Before that happens, contact debt counseling services for bankruptcy.
2. You’re becoming an inconsistent payer
You skip payments on some accounts in order to pay others because you cannot keep up. Sometimes you pay, sometimes you don’t. Later down the road, you won’t be able to pay any because of the interest that continues to increase as you skip payments. You can call your debt counseling company and seek out for help.
3. You only pay the minimum amount
You are juggling all your finances just to pay the minimum amount due so you won’t receive notices. It will become a habit in the coming months. It’s bad for your financial health and a stress on your part. There’s a relief when you’re paid, but it’s a continuous burden because of limitless debts. The relief will just discharge you for a short time, not even in a month’s time. Your credit card companies will never get tired of sending you emails of your bills.
4. You make use of your credit card’s cash advance feature
You take advantage of every single cent you can get out of the use cash advance feature of your credit card to pay your other credit card bill. It’s a bad sign of incurring debt and never ending bills. Good thing about it (at least for your credit card company) is that they will dispense a percentage of the amount left in your account, not all of it.
5. You cannot pay your bills at the end of the month
Again, interests. Your funds will be soon be not enough to pay your bills. It feels like a trap when your due date is coming. If you reach a point where you are willing but not able to pay your bills on its due date, get in touch debt counseling agencies to guide you on how you can adjust your finances.
6. You borrow from friends and family
Most of the time, borrowing from your loved ones exempt you from compounding interest. Just because they’re your family member or friend and they care for you and your financial state. When you borrow from them, there will never be an assurance from your part that you will pay. It will just be a shame on your part if you failed to pay off the money your borrowed. There is less stress but you have no choice when they bug you. Worse, you borrow again from some other friends to pay off the money you owe the previous ones. Result? Never-ending debt.
7. You receive letters and calls from creditors and law offices
There will come a point where you are afraid to open your mailbox because you are aware that it may come from your creditors asking for you payment. Worse, it can come from law offices. Their ways of collecting money never fail to stimulate the paranoia in you. This should not only be dealt with ignoring them, call assistance that will professionally help you because your credit card companies will surely hunt you like a ghost.
8. You can’t sleep well at night
Your debts are psychologically attacking you! They’re even bugging you at night and in your dreams. Make sure that the debt counseling services that you will avail will also help you on financial advices on your behavior and possible psychiatric needs. Don’t be paranoid about psychiatric help, absorb everything as it will surely help you and prevent you from any severity.
About the Author:
My name is Ian G. Elbanbuena a professional finance blogger and infopreneur. I mainly write on personal finance, credit, loans, insurance, debt and business. At present I work on behalf of Compare Hero, the country’s leading comparison website. This portal helps individuals in saving money by comparing credit cards in Malaysia. Follow me on twitter: @elbanbuenaian