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Helping You Become Debt Free

For some managing a £1,000 debt, it can be troublesome. For others managing debt worth £1,000 is nothing for them to worry about. So, it’s not about the amount that defines that you have debt problems or not, it is about considering if you can repay your debt amount no matter how big or small the amount is.

Below are two questions that you must ask yourself. 

Are you facing problems in managing your daily or monthly bills?

Has your debt started impacting your life?

If the answer for both is yes, then it is time for you to take the necessary steps to tackle your debt issues. Or else you could find yourself in trouble for sure.

In this article we will discuss debt trouble signs that you must never ignore:

  • Sleepless Nights: This might the first sign that you must never ignore. If you spend your night thinking of how to meet your daily/monthly expenses, then it’s the right time for you to think about how to fix this issue sooner or later as it will start impacting your life.
  • Ignoring bank statements: Ignoring your problems is only ever a short-term solution, it will not help you in resolving your debt problems. If you are receiving bank statements that show you have more money going out than coming in then don’t ignore them and think of talking to your debt advisors to find a possible solution for them before the situation is taken out of your hands.
  • Unable to meet essential bills: If you are short off fulfilling your basic requirements such as food, your rent and utility bills it should be your priority to check your spending. If you have problems in managing your budget, it would be best consulting a budget expert.
  • Stressed and worried: if you are continuously stressed with the thoughts that you are in debt, then you must start thinking about taking measures to resolve it.
  • Monthly spend: If you are spending more than your monthly income then it is time to seek help.
  • Debt instalments: If your debt payments including credit cards, loans, and your rent or mortgage payment exceed 40% of your monthly income.
  • Calls, letters, and e-mails: You are receiving regular calls, letters, and emails from debt collectors.
  • Bill Payments: You are always late with your bill payments. The reason for this could be an unorganized spending habit and lack of budgeting. Ignoring a bill might be ok in the short term, but for sure these bills will always come back with additional late fee charges.
  • Credit Cards: If you own a credit card and you never manage to pay full balance required every month you will then be stuck with the habit of paying a minimum balance if you carry on in this manner. You then might pay more than the actual amount for the product as the interest-free period may run out before the balance is paid off.
  • Interest-to-income ratio: If the monthly interest that you need to pay for your debts exceeds more than 20% of your total monthly income then you will need to find a quick solution. Paying more interest on your debts means you will have less money left to cover your basic requirements such as rent and utility bills.
  • Borrowing money: If you are borrowing cash from your friends and family members then this will always need to be paid back as a priority and could impact you making payments to your other debts. If you withdraw money from your credit card to pay your bills this can be the worst thing that you will, as you will be charged a higher interest rate and additionally you will have to pay an advance cash fee.
  • No Savings: Most people with a sound financial position can make the mistake of having no savings. If you are already in debt and have exhausted your savings to pay off your debts or bills, then you will need to consider that you will soon find yourself with future debt problems.
  • Not being honest about your finances: If you are not being honest about your financial situation with your friends and family members.