It’s tough to get ahead in the world. Not only is it a challenge to find your footing on your own, there are plenty of things that can go wrong that you have no control over. It seems like every few years, something major happens that can throw your life plans for a loop. Millions of people’s lives and livelihoods have been turned upside down by the pandemic’s effects on the economy. For just about everyone old enough to have been in the working world at the time, the 2008 Great Recession had the same effect.
How Does Credit Counselling Work?
It’s a constant struggle to get ahead financially and just impossible for some. Non-profit credit counselling services exist to help you manage debt without having to file bankruptcy. Bankruptcy can make it impossible to get credit for years and require you to liquidate assets, so an alternative can be a great idea.
Certified Credit Counsellors from a non-profit credit counselling agency can assess your financial situation, discuss your options, and assist you with money management.
Certified Credit Counsellors at Credit Canada, for example, offer a Debt Consolidation Program that reduces or eliminates high interest rates on your unsecured debts while providing you with money management help. They can help you find a balance between budgeting and better money habits with relief from interest rates, which are often the biggest obstacle between you and debt freedom.
When Do You Need Credit Counselling?
It can be hard to tell when you need to take more action about debt. It’s not always easy to step back and view your situation objectively. These are some signs that it’s time to find another course of action.
#1 Overwhelming Stress
Financial stress is bad for your health. It can feel like living underneath a dark cloud that haunts your every step. When money is all you think about, you’re going to feel the strain mentally and physically.
Some of the signs of overwhelming stress include:
- Insomnia
- Anxiety and depression
- Weight gain or loss
- Headaches
- Gastrointestinal problems
- Increased use of coping methods.
#2 No Savings
Saving for your retirement isn’t a luxury; it’s a necessity, and the sooner you start, the better. The problem is, debt can stand in the way of starting your retirement fund. Everything from student loans to mortgages prevent young people from saving. Throw high-interest credit card debt into the mix, and the situation can feel hopeless.
#3 You’re Juggling Bills
Have you recently chosen to “ignore” one bill so you could pay another? That’s a sure sign that you’re in too much debt and you need to take action immediately. Juggling bills will inevitably lead to mounting debt problems, including collection calls, a poor credit score, and worse.
#4 Your Credit Card Balance Keeps Growing
Spending more than you earn every month will quickly lead you into financial trouble. Your balance should be shrinking every month, not growing. If you’re carrying money over month-to-month, it’s time to reverse course.
Plenty of people are determined to make it out of debt on their own, but they don’t realize that they’re paying more in interest and taking longer than they need to. Non-profit credit counselling will help you save time and money on your path to debt freedom.