3 Surefire Signs You Need Professional Help for Overwhelming Debt

Posted by Steph Perine on Sep 28, 2019

3 Surefire Signs You Need Professional Help for Overwhelming Debt

From mortgages and car payments to student loans, medical bills, credit cards and other unsecured debts, your total debt can add up to enormous amounts over time. Recent reports have shown Americans have accumulated $1.04 trillion in credit card debt alone. In some cases, paying off the debt efficiently can be possible. However, many others struggle to maintain financial stability because of their debt.

Fortunately, help is available if you feel your debt is out of control. The following guide will help you determine if you should seek out professional assistance regarding your debt situation.

 

You Struggle to Make Minimum Payments

Most credit card companies set a minimum payment, which is a percentage of the total balance. This minimum payment may vary depending on if the credit card balance is higher or lower each month.

Each month, the credit card company adds interest to the credit card balance, increasing the total amount you need to pay off your balance. The minimum payment alone may not even cover the interest added since the previous month. The combination of increasing interest and balance each month, may make it impossible for you to pay the debt off, especially if you are only making monthly minimum payments.

Paying more than just the minimum payment each month is best if you want to pay the debt off sooner. Unfortunately, increased balances, high interest rates, and other expenses may affect your ability to even pay the minimum payments.

If you struggle to make even the minimum payments on your credit cards and other unsecured debts, seek out professional help for your debt.

 

You Borrow Money to Pay Debt

Taking out cash advances, payday, home equity loans or borrowing from your retirement accounts, is not a good way to pay off your debts.

Cash advances on credit cards will not only lead to higher balances and additional interest charges, but you may also be charged a one-time fee of 3 percent or even higher.

Withdrawing from your retirement account can also be costly. On average, you can expect to pay a 10 percent early withdrawal fee. In addition, you will be required to pay normal income taxes on the amount withdrawn from your retirement account at tax time.

If you take out a home equity loan, you may be responsible for paying appraisal, title costs, and loan origination fees, causing you to spend money that you could use to pay down your debt instead.

All in all, borrowing from Peter to pay Paul is not recommended, since this will only end up costing you more money in the long run.

 

Debt Collectors Are Contacting You

Debt collectors will likely start contacting if you late or missed payments. These collectors have the right to do so because you made a contractual agreement that you would pay for the debt. Unfortunately, the endless letters, notices and phone calls can become physically and emotionally overwhelming.

If you have received numerous letters and phone calls and you cannot remember who you owe what debts to, seek professional help.

Debt settlement professionals can help with a free consultation to review the following:

  • Perform a creditor analysis of which creditors you owe and how much you owe them;
  • What your income and other expenses are;
  • Outline a monthly budget; and
  • Personalize a solution to address your unique financial circumstances.

You could decide to live with your debt, but the stress of overwhelming debt can put a dark cloud over your life. If you have experienced the above signs of debt issues, get in touch with Century Support Services to gain back control of your debt and finances. Our Certified Debt Specialists are ready to help. We look forward to speaking with you, discussing your concerns, and finding solutions to your financial situation.