Just Starting Out? Assessing Your Debt Level is the First Step
Whether starting out on your own, starting a family, or graduating, we are here to explain what to look for when deciding if debt help is needed from a licensed insolvency trustee in Ottawa.
Debt seems to be a part of life. Cars get financed as do homes, education, and nights out on the town. Not all debt is equal and having too much debt can cause problems, including straining your relationships and your health. Some people may suffer from night sweats, headaches, upset stomach, insomnia, or even high blood pressure because of their debt load. Often, credit cards that have been used to the maximum limit available can drain resources that would be better put to use on buying a home or saving for retirement.
How Much Debt Is Too Much? Know When It May Be Time for Debt Help
If you have been turned down for a mortgage because your debt load is too high, it is time to assess what may be going on and how to get help. It all starts with understanding what debt overload is, some commons signs you might be in it, and how to get help wrangling in your finances:
- Debt Overload Defined: When your “bad” debt is more than 10% of your income. Bad debt includes loans and credit cards that have high or variable interest rates and generally are used to buy items that lose value. For example, using a loan to pay for a vacation would be considered a bad debt.
- Common Signs You May be in Debt Overload: Struggling to pay your bills is not the only sign that there may be a problem. Ask yourself if any of these situations apply:
- Are you only able to make the minimum payments on your credit cards?
- Do you struggle to make ends meet each month and live paycheck-to-paycheck?
- Have you stopped, or never started, contributing to your retirement plan through your employer?
- Are you unable to put money back for an emergency fund?
- Do you rely on credit cards to buy everyday items or for cash advances?
- Get a Big Picture of Your Total Debt: When you write down your debt payments and calculate it in conjunction with your income, you obtain your debt-to-income ratio. This is an incredibly important percentage to know since it shows you the 30,000-foot view of your financial health. The higher the number, the more likely you are to struggle to pay your bills.
- Develop a Debt Plan: Too much debt can thwart your plans for buying a home and starting a family. Fortunately, there is help to stop digging a deeper debt hole and take back control of your finances. Licensed insolvency trustees help consumers with the next steps in addressing their money habits through a variety of services including debt repayment plans.
Stop Drowning in Debt – Get Timely Help from D. & A. MacLeod
If you recognize these signs, you may be in debt overload. The professionals at D. & A. MacLeod can help you with a free, no-obligation consultation to discuss your unique needs and develop a debt solution. Regain peace of mind and enjoy financial health – call us today!
Contact us for debt help and schedule a consultation to get started eliminating debt and gain financial well-being.