You don’t need to wait for debt collectors to come pounding at your door to realize you need debt relief. In fact, it is sometimes necessary to organize your finances. So how do you know when it’s time to avail of debt relief programs?
Most people can take advantage of debt relief at least once in their lives. Sometimes you can’t figure out the signs that you need it. So, you try to keep up with your usual financial situation until it gets to the point that your debts become unmanageable. Before you hit rock bottom, here are four signs you may need debt relief:
You have zero savings
Your savings work as a safety net especially during emergencies. Medical bills, car repairs and life events can’t wait, right? So, if you have no savings to cover for at least three months of living expenses, where will you get the funds when major economic catastrophe strikes?
Financial experts advise putting money into your savings account, not only to have funds for future purchases, but to see your money grow overtime. Having no savings could indicate that you are struggling financially and that you have no spare funds to set aside.
You only make minimum monthly payments on your credit cards
It’s true that making minimum payment is better than not paying at all. After all, by making the minimum repayment, you are paying down on your credit card debt, and preventing the debt from getting bigger.
But, if your minimum payment is less than the amount of interest charged to your credit account every month, it will take a long time for you to pay your balances. What happens is that the issuers would extend the amount of debt that you owe and earn more interest from them.
You go over your credit card limit
If you charge more than the credit limit of at least once credit card account, it may lower your credit score and indicate that you have been managing your credit poorly. IT could also mean that you are a high-lending risk. Lenders may also increase the interest rates, or decrease your limit while they impose penalty and over-the-limit fees on your account.
You have no idea how much debt you owe
If you don’t know how much loans you have, how much interest rates are being charged and you don’t know until when you will be paying for it, you’re not alone. A lot of borrowers don’t know how much they’re repaying every month from their income. Some didn’t even notice the interests charged to their accounts.
The problem is that many people earn enough to make repayments on bad debts but they have no idea how much debt they still owe. If you want to pay back the loan in full, but you have no idea where to start, it’s time to consider debt relief programs.
You can’t hide from debts forever, so you might as well face them head on. Otherwise, interest would compound and you may not be able to salvage your finances when it gets worst.
You can start by calling us today. We will help you trace your credit history, clean it up when there are some erroneous entries. We can help you repair your credit so you can have a fresh start.
Contact Clean Credit today.