Debt is a concern for most people at some point in time. This debt may include only making the minimum payments on credit cards, or it may mean missing a mortgage or car payment after the loss of a job or an emergency expense.
However, for some individuals and families, debt can become an overwhelming issue. The debt becomes a growing problem that increases exponentially with fees, penalties, and mounting interest rates on balances.
Before debt gets to this point, there are several signs that signal an early problem. The debt consultants at 4 Pillars recommend considering these factors as indicators of the need for a debt management plan.
Anxiety Around Financial Issues
Many people that come into 4 Pillars for assistance with debt have significant anxiety and stress around their financial situation. When thinking about debt or how to manage existing bills and payments is causing stress, it is time to seek help for your wellbeing.
Juggling Payments
Making partial payments or deciding which bills to skip a payment is another common sign noted by the team at 4 Pillars. Not making at least the minimum payment and skipping payments adds to fees and penalties while also hurting your credit score.
Creditor Letters and Calls
Calls, letters, emails, or text messages from creditors are a sign of a debt management problem. While creditors may be willing to work with consumers at the early signs of financial issues, they become less flexible as bills go unpaid.
Proactively addressing debt at the first signs of the problem provides consumers with the most options in resolving debt.
