After the expense of the holidays, many of us wonder how much debt is too much. Yes, Canadians are used to carrying record debt loads, but there comes a point where the burden may become too heavy.
Here are 10 danger signs that could reveal your spending is out of control:
1. You are making only minimal payments on your credit card balances as you head towards maxing them out.
2. Even so, you continue to use them for everyday purchases, such as groceries or gas.
3. You are using one credit card to pay off another. The fact that you have more than one or two credit cards is in itself a danger signal.
4. You borrow money to make it from one payday to the next.
5. You miss payments and due dates for bills and loans.
6. Creditors are after you for payment, threaten to sue or repossess your car, furniture or television, or hire a collection agency to recover the money for them.
7. You argue a lot with family about money, or hide your spending habits from them.
8. The size of your debt grows month after month. Or it has grown so large that you are afraid to look at the real total.
9. Extra money earned through overtime, tips or bonuses is relied on as part of your regular monthly income.
10. Thoughts about money and debt crowd out all others and put your life under a cloud.
Although your situation may be dire, it is never hopeless.
If you feel your debt load is becoming too much, come into Richard Killen & Associates for a free assessment. As a federally licensed trustee, we can take you through all the possible financial coping strategies – whether it is debt consolidation, negotiating with creditors, a consumer proposal or even a personal bankruptcy – and find out what works best for your particular situation. And you make all the decisions.
After all, we’re talking about your peace of mind, right?