Debt Warning Signs

What Debt Warning Signs Should I Watch For?

With the financial structure of our society, debt is just about an inevitability for all people.

However, there are different levels of debt amongst the population, leading many to wonder what an appropriate amount of debt really is.

When does debt stop being reasonable or manageable?

In what situations does a financial hiccup result in a real and long term financial problem?

To organize this information, we’ve curated the symptoms of dangerous debt.

Check out the warning signs below.

Basically, the more of these symptoms you have, the more problematic your debt situation truly is.

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Read on to learn more:

Warning Signs of Problematic Debt

 

  • You always hear from creditors regarding overdue payments. Whether by phone call or letter, when you are being constantly spoken to regarding your overdue debts and bills, there is a significant issue.
  • You can only make a minimum payment on your lines of credit and credit cards. This is symptomatic of having more debt than you can afford and can lead to severe issues.
  • You have taken or continue to take cash advance loans either from your credit cards or from those in your social network in order to afford your living costs.
  • You’re dealing with wage garnishment from your paychecks or you are detailing with seizure of assets from creditors.
  • Collections agents or bill representatives contact you at your place of work to discuss your bill payments.
  • You are always paying interest and additional service charges for your debts due to the fact that you are unable to make the payment on time.
  • Your issue payments of over 40% of your pay for your living expenses including utilities, home costs, and your rent or mortgage payments.
  • You are perpetually creating arrangements with creditors in order to gain traction over missed bill payments.

 

If these signs apply to you, speak to a licensed credit counsellor to learn your options up to and including bankruptcy.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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