What is Debt Counselling? Here are five signs you may need it.

3 min. readbyVexxit StaffonMarch 24, 2021
Financial problems affect everyone. Whether it’s been creeping up on you for the last few years, or it happens because of a quick loss, unmanageable debt is overwhelming. For many Canadians, asking for help is the hardest part.

What is Debt Counselling?

This is a formal process where you work with a certified credit counselling professional who will assist you in negotiations with your creditors to consolidate your debts into affordable payments. Everyone’s situation is different, but a credit counsellor will help you decide on the best option for your specific scenario.

Five signs that you may need debt counselling:

1. You Are Unsure of How Much Debt You Have

One of the first signs that you are headed towards financial trouble is not knowing or acknowledging how much debt you are actually in. Without going into every account, or adding up every credit card, can you guess how much you owe?

2. You Can’t Seem to Make Payments On Time

From the phone bill to your car insurance, another sign of trouble is when you continue to miss or make payments late. This issue is most likely a direct result of not bringing in as much money as you are spending. Missing payments can add late fees, interest charges and affect your credit score.

3. You Are Constantly Going into Overdraft or Dipping into Lines of Credit

While overdraft exists for a reason, falling into overdraft on your account on a regular basis is a red flag. Some chequing accounts include overdraft protection, but most of them don’t, and even the ones that do have limits. Typically, the bank will charge you an overdraft fee every time you hit the negatives.

4. You Are Spending More than You Are Bringing In

When it comes to spending habits, many Canadians struggle with ensuring they are spending within their means. What does this mean exactly? Logistically, it means not spending more money each month than you are being paid for. Any debt or credit counsellor will tell you that putting money into your savings and living by a detailed monthly budget are just two easy ways to tackle your spending.

5. You Have Been Losing Sleep or Experiencing Anxiety Over Money

If you are stressed about your financial situation, you probably aren’t sleeping very well. Many Canadians struggling with financial turmoil have shown signs of serious anxiety and guilt, which may be the reason you are tossing and turning every night.

What To Do Next?

If any of these signs are part of your daily life, it may be time to tackle your financial burdens. A trusted advisor or consultant will always tell you—the sooner, the better. Asking for help is the first step. We’ve got your back—you can connect with a trusted debt advisor or consultant on Vexxit today. Imagine how exciting and stress-free your life will be when you have the ability to meet all your financial expectations and anticipations

Make a Plan to Be Debt Free

Saving money isn’t an accident, it’s a skill. It’s also the foundation of having an invincible financial plan. For resources to help you pay off debt quickly and start saving for the future of your dreams, visit our Personal Finances section on Vexxit Life.

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