Debt Warning Signs
Debt Warning Signs for Individuals in British Columbia
Many of us have some debt, whether that’s from a credit card or student loan. While a small amount of debt is fairly normal, how do you know when your debt has gotten out of control? What seems average to you might be more significant than you think. At J. Bottom & Associates, we’re dedicated to helping our clients across British Columbia identify the warning signs and develop strategies for how to get out of debt. Here are some of the most common signs of debt you shouldn’t ignore.
Frequent Phone Calls from Creditors
You’ve probably gotten spam calls before, but if you keep receiving calls from creditors, these are more than your typical spam. Creditors might call you at home or work, asking about overdue bills. In some situations, they may even give your name to a collection agency, which will then begin to contact you as well. These constant calls are more than just annoying—they can interfere with your workday, and eventually, lead to wage garnishment and loss of assets.
An Empty Savings Account
When was the last time you took a real look at your savings account? Usually, it’s recommended to have around six months of expenses stowed away, but this isn’t always feasible for everyone. If your savings account has seen better days—or worse, you don’t have a balance at all—it could be a sign of a significant debt problem. A lack of savings, as well as a meagre checking account and a history of bounced checks, all mean that debt is becoming a major issue.
Struggling to Pay Off Credit Cards
Keep a close eye on your credit card statements, as they could be a clear warning sign of debt. While small amounts of credit card debt may not be cause for significant concern, constant issues with these cards could be a sign of a larger problem. These issues might look different for different people, but the most common problems include:
- Only making the minimum payment on your credit cards
- Paying bills using cash advanced from credit cards
- Spending until a card is near or over the credit limit
- Trying to pay off your credit card while simultaneously making more purchases on it
Frequent Overdue Bills
We all miss a bill payment once in a while, but if you are constantly paying bills late, debt could be on your doorstep. If it’s a matter of memory, put your bills on automatic payment. But if you’re worried about being unable to pay them each month, take a deep dive into your financial situation. The Licensed Insolvency Trustees at J. Bottom & Associates are always here to help.
Uncertainty About How Much You Owe
Investigating your own finances can feel daunting. What if you find something bad while looking through your accounts? However, those who don’t know about their debts are much more likely to struggle with repaying them. When you come up blank when asked how much money you owe, it’s a telltale sign of a debt problem. If you don’t know how to tell how much debt you have, don’t hesitate to reach out to our empathetic team. We’ll work with you to secure a brighter financial future.
How Can I Pay Off Debt Faster?
Do you relate to at least one of the warning signs of debt? It’s time to take action. With some help from J. Bottom & Associates, you can take on your debts and pay them off quickly and legally. You have plenty of options for paying off your debt faster, and our team will be here to guide you along the way. A few solutions we might recommend include:
- Selling assets you don’t need, like expensive jewelry
- Creating a monthly budget and cutting costs
- Refinancing or debt consolidation
- Contacting creditors and honestly explaining your situation
- Filing a Consumer Proposal
- Making a debt settlement
Your Trusted Partner for Debt Management
Instead of struggling through debt management alone, look to the team at J. Bottom & Associates. Our professionals help clients in New Westminster, Port Coquitlam, and North Vancouver get back on track with their finances. Our team understands the hardships that come with significant debt, and we’re dedicated to helping you get out from under that burden. Contact us today to set up your free consultation.