Signs of Financial Trouble
Past due statements, accounts closed without you and payments that reflect the minimum due are of few of the red flags that you need debt counseling. If financial problems are sneaking up on you, the best solution is to confront your reality and take positive steps to remedy the situation. According to a piece by cheatsheet.com, there is nothing to feel ashamed about if you have credit card debt that is higher than you realized.
Relying on your credit card too often is an innocent habit that turns into a larger problem if left unchecked. Instead of remaining in denial, consider the signs of financial trouble. By enrolling in a debt management plan through a Christian credit counseling agency, you turn a negative into a positive situation. When you are completely debt free, every purchase you make will feel sweeter because you can afford the item.
Borrowing money from others
If you borrow money from family and friends, it can either be a positive or negative sign. Some people borrow money or take financial gifts from relatives so they can avoid running up credit cards. If you have to pay back a friend or relative, it can strain the relationship. Also, if you turn to friends or family because you have already maxed out your other sources of loans and credit, it is a major financial mistake.
Dealing with bill collectors
Another warning sign you your financial problems are interfering with your life is when you receive calls from bill collectors. With the help of a trained and accredited credit counseling agency, you don’t need to worry about bill collectors. A credit counselor talks to your creditors for you to come up with an agreed upon plan for debt repayment. For you, it’s all about making one monthly payment. For your creditors, it is about making right on money owed to them.
Credit Cards and Debt
If you rely on credit cards to pay for the basic necessities such as food and gasoline, it is likely you have too much debt. With debt counseling, you learn how to budget so you spend your paycheck on necessities first. Discretionary purchases include cigarettes, alcohol, entertainment, clothing other than work clothes and luxury items.
Feeling paycheck dependent
If you need your paycheck to make your monthly rent or mortgage, it means you don’t have enough in savings to cover one or two months of expenses. With debt counseling, you learn how to save up for emergencies as well as for fun vacations and holidays.