The 5 Signs That Prove You Have Debt Problems

debt-problems

Did you know that more than 40 percent of Quebecers are worried about their debt problems?

For a good number of reasons, your financial situation could degrade and you could rapidly find yourself in a situation of over-indebtedness. To avoid being overwhelmed your debt problems, it is important to notice early when you are struggling financially before it’s too late.

Authorized trustees in insolvency N. Seguin Inc. wants to warn you about the 5 signs that show you are most likely to have debt problems.

1.      Your Income Does Not Repay Your Expenses

To attain financial health, your income must be higher than your expenses. For your income, you can include:

  • Salary
  • Alimony and/or family allowances
  • Housing benefits
  • Employment insurance benefits
  • Any income that you perceive

Your expenses include, but are not limited to:

  • Rent or mortgage
  • Credit cards or loans
  • Subsistence (personal expense, food, electricity, etc.)
  • Insurances
  • Any other purchase

In the case that your income is lesser than your expenses, you are certainly in a precarious financial situation. The income/expense ratio should at least be equal, even if it doesn’t assure you a safety net for the unexpected.

2.      You Have a Hard Time Making Ends Meet

More than 39% of Quebecers declared finding difficult to meet their bills at the end of the month. This is one of the most alarming signs when it comes to debt problems.

When you pay your bills late or leave them unpaid, your debts grow and you find yourself with bigger debts as months go by. It is important to react as fast as possible in that situation before you find yourself without electricity, food, or a roof over your head, for example.

3.      You Often Have to Fight to Repay Your Credit Cards

A credit card tells a lot about your financial health and your debt problems. If one of these situations can be applied to you, this is a sign that you have debt problems:

  • You have a hard time paying the entirety of your credit card bills;
  • You only pay the minimum requirements on your credit cards;
  • Your bank accounts are overdrawn;
  • You had to deal with a denied credit card while shopping;
  • You use a credit card to pay the minimum on another credit card;

If the amount you owe to credit cards frequently surpass your ability to repay, you are highly at risk of indebtedness.

4.      You Have to Ask for Help

Indebtedness often force you to seek help with your peers, family, and friends? Your only way to repay your credit cards or bill is to ask for help around you? This is definitely a sign that you have debt problems. It’s time for you to consider a recovery plan with a financial advisor.

5.      You Are Worried

Indebtedness is also a great source of stress, worry, and upheavals. You might have trouble sleeping and you are fearing for your financial future. These negative emotions toward your financial health are a telltale sign of debt problems. Fixing your debt problems will prevent you from finding yourself in a bad place, both mentally and financially.

Before your debt problems turn into something bigger that forces you to get familiar with the Bankruptcy and Insolvency Act know that there are solutions for you. Do not hesitate to contact N.Seguin Inc. today. Our professional financial advisors are happy to guide you and help you fix your debt problems with debt consolidation, consumer proposal, and personal bankruptcy.

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