There are usually several tell-tale signs that you need assistance with managing your debt. What many consumers don’t realise is that there are formal and regulated solutions put in place to help you through this tough financial situation and to guide you to becoming debt free.
Ignoring these signs will only make the problem worse. Instead, think about approaching a reputable debt counselling company that can provide legal protection and a restructured repayment plan, taking the pressure off and allowing you to enjoy life without the added stress of unmanageable debt hanging over your head.
Upon reflection, many of our clients realised that they could have prevented their financial stress if they had seen the tell-tale signs indicating that they were on a slippery slope towards becoming over-indebted. Preventing poor financial decisions and knowing when to ask for help is by far the best way to avoid an unmanageable financial situation.
Here are some of the most prominent tell-tale signs that you need assistance with managing your debt. If you can relate to one or more of these signs, it is probably time to reach out to a debt management company for help. A debt management solution, such as debt counselling, can help you take control of your finances and work towards debt freedom, giving you a fresh financial start.
1.You are taking out more credit to pay off your debt.
If you find that you are taking out more loans to help pay off existing loans, you are only creating a bigger debt hole for yourself, and it is time to seek help before the debt accumulates to a totally unmanageable point.
2.You are taking out credit to help make ends meet.
Using credit to cover your living expenses because your salary is not lasting until the end of the month is not a sustainable solution. If you are dependent on credit cards, loans, store cards and overdrafts to buy food and pay for everyday expenses, you are already on the slippery slope towards a financial crisis. It is only a matter of time before you run out of credit.
3.You are unsure how much money you owe creditors.
If you are avoiding your debt it may be because you suspect you owe more than you are able to handle. Ignoring your debt obligations will only make the situation worsen. You may also be avoiding your credit report because it holds the truth to your financial reality. Checking your credit report is an important first step to controlling and improving your financial health.
4.You are avoiding answering phone calls because it might be your creditors calling.
If you are skipping payments and avoiding calls from your creditors and/or debt collectors, it is definitely time to seek a solution before your creditors start taking legal action against you.
5.Worrying about your debt is causing you to lose sleep.
If you are losing sleep over your debt, approaching a debt counsellor to assist you can help give you peace of mind because your finances are back on track.
Consolidating your debt into one lower monthly instalment and freeing up cash flow can save you thousands of Rands and help you to pay off your debt instead of incurring more.