We all face debt from time to time, and many types of debt — like taking out a mortgage or buying the groceries on a credit card — are an accepted part of everyday life. However, what are some signs that things have gone too far and you need to look into your debt relief options?
1. You have to leave a balance on those credit cards. If you can pay the cards off when the month ends, you can use them without any penalty. If you can’t pay them entirely, though, interest can start to kick in and debt can begin accumulating.
2. You start missing the bigger payments. Missing out on credit card payments is one thing, but running out of money and missing mortgage payments and rent payments is another. This is a sign that something needs to change before you lose your place to live.
3. You’re buying things you can’t afford to keep up with others. You may just want a new car because the neighbors got one, or you may be tempted to buy a nicer house than you can afford because your sister’s house is twice as expensive as yours. Buying for these reasons can be problematic when the money isn’t there.
4. The debt is getting worse. Yes, people miss payments from time to time, and missing one may not be the end of the world. If you’re missing more every week and interest is increasing your debt, that’s a problem. Ideally, you want to see debt going down every month, and watching it rise means you may need relief.
When you see these signs, make sure you know about Chapter 7 bankruptcy, Chapter 13 bankruptcy, and all of the other options that are out there.
Source: Wealth Steps, “Signs That You Need Credit Counseling Debt Relief,” accessed Nov. 23, 2016