Debt can sneak up on you. Unexpected medical bills, a lost job, or living beyond your actual means can lead to a burden that has you lying awake at night wondering if you will ever repay your mounting debt. If you can make changes to your spending habits that allow you to repay what you owe, you should do that now to take control of your finances. However, these are a few of the times you should seek help to overcome high amounts of debt.
1. You Are Behind on Payments
If you have been unable to make payments on your existing debt, and you have fallen behind, it is probably time to get help. Start by reaching out to lenders. They may be willing to lower interest rates or waive fees under certain circumstances.
2. Creditors Have Been Calling You
When you have fallen far enough behind that creditors and debt collectors are calling your home, a debt relief agency can offer some peace of mind. Rescue One Financial representatives will work with your creditors so you can answer your phone without fear again.
3. Unsecured Debt Is More Than Half Your Gross Income
There comes a point when you owe more than you can realistically hope to pay off. As interest compounds and causes your balances to grow, you are only going to sink deeper. A good rule of thumb is that if you owe more than half of your annual income in unsecured debt, you may be in over your head. Debt consolidation or resolution may be able to help you get control over and possibly reduce those balances so you can get a fresh start sooner rather than later.
Don’t let your bills keep you up at night. Work to control spending and trim expenses wherever possible. Be sure to watch out for the signs that your debt may be more than you can handle on your own, and seek help before it gets out of hand.