Consumers often miss the warning signs that they are approaching over-indebtedness, and therefore miss a valuable opportunity to seek out debt counselling before it is too late. Indicators that a consumer may be over-indebted include the following:
- When monthly expenses do not leave enough money left over to pay all debts.
- You are skipping, or alternating monthly debt payments in order stay afloat.
- You often use your credit card to pay debts in a pinch, thus starting a cycle of putting money into a credit card and spending it immediately.
- You have received notices regarding late payments from creditors and creditors have threatened to take legal action.
- You have had to incur debts such as pay-day loans and short terms loans in order to stop financial gaps.
- You have a bad credit score due to judgements against you.
These are all indicators that a consumer is drowning in debt and may need to consider debt counselling. It is important to note that debts that have already lapsed to the point where creditors have taken legal action can be excluded from application. However debts that have not gone this route may be sorted out using debt counselling – debt counselling can also protect a consumer against future legal action from creditors regarding outstanding debts.
If you meet these criteria it is vital that you contact a debt counsellor today and apply for debt counselling.
Article written by: Andrea van Tonder 07-2013