The 5 Red Flags of Too Much Debt

It is no doubt that people keep running into debts. It is so easy to get loans but the problem comes when you have to pay back. Running into huge debts doesn’t usually happen just like that.  It’s gradual and most times the debtor doesn’t realize he/she has amassed so much debt until something goes wrong such as a job loss.

It is important to know when you’re getting close to a red flag and stop before you get entrapped in a place where it is difficult to find a way out. These red flags are:

  1. Spending up to 20 percent of your income towards consumer or personal debt payments, such as credit card debt and lines of credit.
  2. How much time will it take you to pay back your high-interest debts? If it will take years and years, and the interest rate is high, it is a red flag indicating you have excessive debt for your income.
  3. If you have piles upon piles of unattended bills and credit card statements, it is a red flag.
  4. Borrowing again and again, and collecting more loans to cover existing debts. This is a red flag that you are in serious trouble with your debts.
  5. If you put in for Payday loans where you apply to take out a portion of your next paycheck, this is a signal to know you have too much

 

How to settle your debts problems?

The solution to your indebtedness is Reynolds and Association Inc.  This licensed company in Ontario offers you interest-free debt services and guides that would help with debt settlements either through bankruptcy or consumer proposals.

Get in touch let us ease your stress!