Like a summer storm, financial trouble can happen without much warning. Perhaps you’re in financial trouble right now and have no idea. That’s why it’s so important to know and understand the most common Financial Warning Signs.
There are some people out there who don’t realize that they are one “life-changing” event away from falling into debt. These people might make more than the minimum payment on their credit cards each month. They may even have some money left over at the end of the month. They could have a nice 401k set up also. But the thing that will put them over the edge is the fact that they don’t have any savings. There’s no emergency savings fund, rainy day fund, etc. to help cushion the blow of a life changing event.
We see it all the time here at Advantage CCS…people who were making ends meet and didn’t think they had a debt problem or they were managing their money all wrong. Then something happens to them, like a job loss, major death in the family, major illness or injury, divorce, etc. The list goes on and on. They now find themselves in some serious trouble and falling into debt. Sadly, it happens all the time.
A growing number of families struggle with excessive financial obligations—you are not alone. It is important to recognize that the way you manage your finances in one area of your life can and often does spill over into other areas. Don’t be fooled into thinking your credit card problems or your lack of savings won’t affect your mortgage or car loan, because they most certainly will, especially if not dealt with swiftly.
There are many challenges that life may throw your way, which can leave your debt spiraling out of control. Whatever the reasons may be, the indicators below are a sure sign that you will benefit from free credit counseling.
Here are some early warning signs that you may need help:
- You don’t have enough money in your savings account or you don’t even have a savings account at all.
- You’re only paying the minimum monthly payment required on your credit cards each month because that’s all you can afford to pay.
- You are often late paying your bills or you accrue late fees and/or over-the-limit fees often.
- You routinely spend more than you earn each month.
- Your credit limit is maxed out on most of your credit cards or pretty close to it.
- You have a shortfall in your budget instead of having a positive budget.
- You just had an unforeseen “life changing” event happen to you, such as a major death in the family, a divorce, loss of income, major medical issues, etc.
- You skip payments on some bills in order to pay others or use cash advances on one credit card to pay off another one.
- You recently got turned down (denied or rejected) for a loan or new credit card.
- You spend more than 20% of your net income on your credit card bills each month.
- You need to refinance a loan to reduce your monthly payment because you can no longer afford to pay it every month.
- You need a co-signer on a loan because you’re seen as a high credit risk.
- Financing your vehicle for six years or more just so you can afford the monthly payment.
- If you’re just opening new cards because you’ve maxed out the other ones or are close to your credit limit.
- You’ve asked your parents and/or friends to lend you some money.
- You have put off important doctor visits or dentist visits because you can’t afford it.
- You are living paycheck to paycheck.
- You rely on money you don’t have to get by each month.
- Debt collectors are calling every day.
- You are hiding debt from your spouse or significant other.
- Your debt is so big that you don’t know the actually amount of just how much you owe.
If you feel as if you are stretched to the max financially, and have no breathing room in your budget, reaching out to a credit counseling agency can help you to create a solid plan of action for regaining your financial standing. The free credit counseling services offered at Advantage CCS can help you improve your financial stability. Working closely with a professional certified credit counselor will help you put your finances back on track while putting an end to pesky calls from debt collectors.
If you fall into a few of these early warning signs, then give us a call today! It’s better to be proactive and understand your current financial situation, then to wait for something to happen and get knocked off your feet and have no options available to you.
We may not be able to help you with our debt management plan, but we can give you some advice and a stable ground to build upon. We’d rather help you now and correct the problem, than to hear from you in 6-8 months and find out you’re filing for bankruptcy. Call us today at 1-866-699-2227.
For over 47 years, the credit counseling team at Advantage CCS has helped thousands rid themselves of debt from credit cards, unsecured loans, medical bills, and more. Contact a counselor from Advantage CCS today to start learning about the financial tools to better manage your debt.