6 Urgent Signs that You Need Professional Credit Counseling

Financial struggles are a battle many adults face on a daily basis. According to the 2022 Financial Stress Index, roughly 38% of Canadians say that money is their biggest concern. They are either “struggling to get by” or are “just getting by.” There can be a list of reasons why this happens, the major being the lack of income and poor money management. 

Doyle Salewski Inc. explains that whatever the cause of their current financial situation. Fortunately, there are debt help services for people who feel they need it, including free credit counseling services. Not sure if this can help you? Read further below to learn the indicators in recognizing a problem. 

How to Tell if You Need Credit Counseling

1. You’re Living Paycheck to Paycheck

When you use up every paycheck on bills, credit card debts, as well as other expenses and spending, many adults still find themselves without a financial safety net. If you lack an emergency fund, let alone a savings for retirement, 

If you don’t have an emergency fund, let alone any savings for retirement, you might find yourself on a slippery slope to major financial disaster. Further, if you notice how you’re always just waiting for the next paycheck, then you can use the service of a professional credit counselor. 

2. Late Credit Card Payments

The problem isn’t necessarily with having debt, it’s not paying it, or paying it later than the due date. Late credit card payments are an obvious sign of financial mismanagement and often leads to poor credit scores as well as the inability to access more credits in the future. This is particularly disadvantageous when you’re planning to buy a house or a car. 

3. You Don’t Know Your Credit Score

It’s especially challenging to make a financial plan if you don’t know where you stand. Finding out your credit score is an important puzzle piece. While credit reports are  detailed accounts of debts and payments, the credit score is basically a review of the behavior reflected in the credit report. Ultimately, the credit score is the number which determines your creditworthiness. 

4. Collection Agencies Are Looking for You

Receiving calls and letters from collectors might mean that a bank or lender sold your debt to a third-party collector. In other words, if you owe the CRA money, it’s standard for  private debt collectors to collect that amount on the behalf of the agency. 

Professional Arnprior Credit Counseling is able to assist you sort through this old debt and figure out how best to handle it given your income and assets.

5. You Have No Idea How Much You Owe

Needless to say, not knowing the amount of money you owe is a red flag. This could mean that you’re overwhelmed by the amount of money you owe and are trying to avoid confronting the problems. This could also mean you are disorganized when it comes to your finances. Whatever reason you might have, it’s crucial to get that information in order for you to come up with an effective strategy. 

6. You Hide Financial Information From Your Partner

A significant number of married couples today admit that credit scores are a source of stress in their marriage. The moment you decide to hide your real financial situation for your spouse is also the moment you become dishonest with them. This could cause major problems in the future which could be easily prevented through credit counseling. Check this out for more information. 

If you can relate to the signs mentioned above, It may be best to look for a reputable local credit counselor. However, you must also be wary of red flags, like agencies that require you to provide details about your situation in exchange for information about their services. A trustworthy team would be more than happy to offer the information you need for free with no strings attached.