4 Signs You Need Expert Help With Debt

Albert Howard

Updated on:

4 Signs You Need Expert Help With Debt

Everyday Americans get into significant debt for a number of different reasons, such as medical bills, job losses, and study fees. Often, skyrocketing debt is out of their control, and it can quickly become apparent that it’s much more than they can handle. 

If you’re currently in this situation and feel overwhelmed by how much money you owe, you might be wondering if you’re at the point of needing professional help. If you can relate to these situations below, that time might be now. 

You Don’t Know How to Pay Down Your Debts

If you’re currently only able to make minimum payments on your debts, and your balance isn’t getting any lower, expert help might be required to learn about debt repayment options, such as government debt relief programs

Government debt relief programs are government-approved and regulated processes under the Bankruptcy and Insolvency Act, protecting your obligations and rights if you were to file a personal bankruptcy or consumer proposal. Sometimes, consumer proposals, which are available in Canada, can be cheaper than other debt solutions and allow you to structure unsecured debts into low monthly payments. 

You Don’t Have a Budget

Having a budget is one of the best money-saving tips any financial expert can offer. With a budget, you identify your earnings and allocate set amounts to specific costs to reduce the risk of spending more than you earn. If you don’t already have a budget and are unsure how to create one, you might see the value in contacting a budgeting expert to show you how to put one together. You can then take control of your earnings and potentially enjoy a more financially stable lifestyle in the future.

You Rely On Credit

Credit cards can be convenient for traveling abroad and covering emergency purchases. However, if you’re relying on credit to cover everyday living expenses like rent and groceries, you might need professional help. Credit cards can sometimes have high interest rates, meaning you might be paying back your credit card company far more than you spent each month. Financial experts can review your expenditure and credit card bills and offer management advice and solutions. 

You Don’t Have Any Savings

Many Americans are living paycheck to paycheck, which means even if they’ve opened a savings account, they might not be putting money into it regularly. A savings account can be crucial for covering unexpected costs like car repairs, making it essential to contribute to one to avoid relying on credit. 

You might see the value in seeking expert help to learn how to start your savings journey. You can find out more about different savings methods, such as the 50/30/20 Budget Rule, which encourages you to spend 50% of your income on needs, 30% on wants, and 20% on savings. While not everyone is in a financial position to save money, you might not know whether it’s a possibility for you unless you contact a budgeting expert. 

High debt levels can cause considerable stress, especially if you’re unsure how to change your financial situation. If you have unmanageable debt, no budget, and no savings, now might be the right time to consult experts for advice.