Are you worried about money? You’re not alone. Research has found that money is one of the main worries that keep people up through the night and causes insomnia. But is it really time to panic? Here are the clearest signs that you’re in financial turmoil.
You Don’t Know How Much You Owe
This is one of the biggest red lights. You should always have a clear idea of how much money you owe at any given time. If you don’t then it’s possible that the interest on loans is building up underneath your feet. This is one of the ways that debt can become completely unmanageable. You need to explore what’s coming out of your account each month and your credit report. Your credit report will paint a clear picture of what your bills are and how long it will be before you are free of your debt.
You Can’t Afford To Save
If you are facing serious debt, then usually almost all your money will go towards repayments. You might be in such a poor state that you have literally no money left over each month to put into a savings account. A lot of people have less than a thousand in savings and that’s a dangerous situation. Ideally, you need about three months’ worth of bills locked into savings. This will help you prepare if a disaster ever strikes when you least expect it.
You’re Getting Collection Calls
Of course, you might find that you need support because you are getting collection calls from people who you owe money too. This can be a terrifying situation because for many people it’s when problems with debt become all too real. No one wants calls from people demanding money but that’s exactly what can happen. When you reach this stage, you need to explore debt relief programs. The best debt relief programs will provide you with everything from payment plans as well as options on how to reduce the amount of debt that you owe.
Be aware that some debt plans such as a consumer proposal will also stop collection action completely and help you manage the stress.
Your Bills Seem Unmanageable
Finally, you might find that the bills you have coming in are now completely unmanageable. Even if you wanted to pay them on time you wouldn’t be able to. This could be because there are simply far too many or it might be the case that there is a problem with your income. Either way, when you find your bills are unmanageable a lot of people will make the mistake of borrowing to pay them off, thus deepening their debt. Instead, you need to avoid this action at all costs and think about getting professional support.
We hope this helps you understand the key signs that you are facing problems with money and that you can now identify some of the steps you might need to think about taking. If you get on the right track here, you can avoid the situation growing worse.
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