“Financial difficulties are not prejudiced. You have to have the courage to ask for help “- Good Lender, Budget Advisor
How to recognize the signs that sound the alarm bells of too much debt? Financial problems affect all strata of society: from the professional to the worker to tip. We just have to open our eyes to the precursors. Here are five things to watch for.
Pay the debts with our card or our line of credit
By receiving their paycheque, people feel relieved to fully pay their credit card balances. “They say to themselves: Phew! However, there is nothing left in the account for the other bills. Credit is not money. This is not our responsibility, “explains Good Lender, budget advisor at Good Finance South West Montreal.
What must we do? First, one has to wonder about the number of times this has happened in the last six months. “It may be a sign that our income is not enough. We need to re-evaluate our financial strategy. “
From one pay to another
The phenomenon is far too common. People do not have room to maneuver in the event of an unexpected event such as the breakage of a washer. “We have to make sure we have working capital in our account. It is necessary to provide a sufficient fund for mortgage payments, insurance, electricity account or telephone. “
Ms. Frick recommends reducing our expenses to achieve a balance. “The ideal is to release a small surplus that is injected as savings into our working capital. “
Being harassed by our creditors
The tip of the iceberg is unquestionably when we start receiving calls from our creditors in the event of non-payment of our credit cards, electricity account, municipal taxes or school taxes. This situation generates untenable stress. “Do not hesitate to consult someone to help us,” said Ms. Frick.
People hesitate too long before taking any steps. “There is still a taboo in the face of financial difficulties. We tend to be ashamed and play the ostrich. Financial difficulties are not prejudiced. You have to have the courage to ask a counselor for help. “
Borrow money from our loved ones
As little as possible, we should consider putting the burden of our debts on our parents or our children. “To borrow $ 5800 from the bank is not the same as with your son or brother-in-law,” says Thibault. The problem arises when we can not hand over the money to someone around us. Personal relationships fester, creating isolation for the indebted person who needs so much support from his family.
Power interruption or telephone
The budget advisor mentions that this phenomenon occurs for both the rich and the poor. Financial problems are not just related to low income. “I get people in my office who are getting $ 150,000 under stress and having their electricity turned off by default. “
The others spend up to 80% of their income on the payment of their mortgage or housing. They then delay the payments of electricity or telephone accounts. Councilor Good Lender advocates an urgent agreement with the creditor to spread minimum payments.