When Should You Seek Debt Relief?

Wednesday, May 16, 2018 - 19:05

Money Management


The average interest rate on credit cards is approximately 20%. For example, if one owes $20,000.00 on credit cards, the approximate annual interest is $4,000.00. This individual will pay about $333.33 in interest every month of the year. You have less money to pay your living expenses or for savings and you have not reduced your debt load at all. Most credit card statements will tell you how long it will take you to pay off your balance if you are only making the minimum payments. Sometimes the statements tell you that it will take longer to pay them off then some of us can expect to live!

So, you can imagine how hard it is for some people to get out of debt. Some people just accept the fact that they will have that debt forever, but that’s not necessarily the best idea. 

So, when should you seek debt help? I would recommend the following:

  • When your debt load overwhelms you.
  • When you feel stress, anxiety or worry about the payments you have to pay.
  • When you cannot make or struggle to make payments as they become due.      
  • If you are having to sacrifice things that you need or like to do in order to pay creditors.

How Does Debt Relief Help?

When you bring your debt load into a solution that is manageable for yourself, you will release stress and give yourself an opportunity for a fresh start. You will have more discretionary income which means you can spend more on things that you need or want or you can begin to save money for things that may want such as house, vehicle or a vacation.

Debt relief is available to help people get back to the starting point and work towards a better future. You work hard for your money and you should see benefits. You will learn to track your spending, deciding what you like and don’t like about your spending habits and learn to save.

Many people are on a fixed income and may have limited resources. For these people, learning to manage your monthly income so that you have a plan to meet your monthly expenses will create stress relief.

If you are struggling with debt, book a free, no-obligation consultation with us. We are here to help!

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