7 Signs You May Need Assistance Getting Out of Debt and Improving Your Credit

While I am away at #FinCon15, we have a post from an up and coming freelance writer named Ashley.  While I did not write this post, I have been in some of the situations below, especially number two, during my days not long ago of relying on credit cards to survive. Take it away Ashley!

Who doesn’t want to be financially sound? As many of us work our way towards financial independence, learning how to effectively eliminate debt and carefully manage the finances becomes a deep concern. Though there are several avenues you can take to get out of debt, restore your credit, and live a financially sound life, knowing which route to take and how to get started can often be challenging. It also goes without saying that sometimes you get stuck in a rut and need a little assistance reclaiming your life. Not sure if you’re there yet? Well here are some telltale signs that you may need a little assistance in getting your finances in order.

1.  You Can’t Afford to Make Minimum Payments

Have you reached a point where you can’t even afford to make the minimum requested payments each month? If so, you’re likely in debt way over your head and may need to renegotiate your payment options with your creditor. Negotiations can often be done on your own. However, if your budget requires you to pay way less than what your creditor is asking, you may need assistance in getting the costs lowered.

2.  You’re Using Forms of Credit to Survive

Have the bills gotten so high that the only way you can survive is to get yourself into more debt? This could be in the form of taking out short-term loans to pay for the groceries or even using your credit card daily to pay for gas. If you’re digging a bigger hole for yourself, you may need a little guidance on how to get out of debt before the matters get worse.

3.  Your Creditors Are Unwilling to Work with You

As stated before, negotiating with your creditors is often a process that you can complete on your own. However, there are some occasions in which the creditors simply do not want to work with you. This is usually in instances where the balance outstanding is extremely high or very old. If you cannot negotiate an arrangement that will work within your budget and your creditor is threatening further legal action, getting help is ultimately the best decision.

4.  Your Wages Are Being Garnished (Causing More Hardship)

In instances where your debt is so overwhelming that a creditor decides to take you to court, you could end up dealing with wage garnishments. Wage garnishments, depending on the type of debt and area you live in can be as much as 20% of your income. For someone who is already dealing with a heaping pile of debt and having a hard time staying afloat, this will only create more financial problems. Getting assistance with this is ideal.

5.  Your Assets Have Been Repossessed or a Lien has Been Placed on Them

Has your debt reached a point where your assets are being sold, repossessed, or a lien has been placed on them? This might include things like your vehicle, home, or other personal belongings that cost a considerable amount of cash. Creditors often do this as a last ditch effort to get their money. Because you need your home and vehicle, you may want to talk to a financial expert about ways to deal with this matter.

6.  You Can’t Afford the Bare Necessities

If your debt has become so out of control that you can’t even afford the bare necessities (i.e. housing costs, food, water, etc.) you have to speak up and get assistance. Creditrepair.com discusses a story about a client by the name of Vicki who was so far behind in bills after the loss of her husband, that her quality of life was completely diminished. Eventually, Vicki reaches out for assistance and is able to gradually get her life back on track.

7.  Despite Your Efforts to Repair Your Credit You Still Can’t Obtain a Loan

Maybe you’ve been paying your debts down as best you can without any assistance, but despite your efforts, you’re still having a hard time getting approved for certain things. If this is the case, you may need to consult a professional to find out what you can do to improve your credit history so that you can eventually be approved for things that you need (and want).

When it comes to paying down debts and managing your finances effectively, there is certainly more than one way to skin a cat. However, if you’ve experienced any of the above signs in your life, it may be time to admit that you need a bit of help. There are financial experts including financial advisors, debt consolidation companies, credit repair companies, and even financial management courses and services that can help you evaluate your circumstances and map out a plan. Don’t let debt ruin your life to the point that all you do is work to pay bills. Clean up your act today and look forward to a better tomorrow.

6 Responses to “7 Signs You May Need Assistance Getting Out of Debt and Improving Your Credit

  • What’s sad is that these aren’t common sense for a lot of people…
    Fervent Finance recently posted…Leveraging Friends and Family for Cheap TravelMy Profile

  • I think the root of the problem can be traced all the way back to the way we are being raised. We’re never really taught how to deal with finances, that’s why we don’t notice the signs as soon as they appear. This article is a start, but we still need to find a fix for the bigger problem.

    • EvenStevenMoney
      2 years ago

      I think we do learn a lot from how we were raised, but I would disagree that just because I received good/bad financial advice from my parents, does not mean I cannot be in a good place financially. Some of the best stories about money come from individuals going against the grain from what their parents had shown them with money and are now successful with money today.

  • Add “You don’t know how much debt you have” to the list. If you can’t articulate just how much debt you have…..you’re likely not paying close enough attention to your finances!
    Brock @Cleverdude recently posted…Budgeting Techniques: Prioritize Purchases vs Delayed SpendingMy Profile

    • EvenStevenMoney
      2 years ago

      I was at a point where I did not want to know how much debt I had and you are spot on had no idea what was going on.

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