Many people are servicing some loan – whether its credit card bills, student loans, mortgage, car loans, personal loans, and so on. Especially if you have a startup business, this makes managing other monthly expenses a challenge. But still, one has to strive to pay all bills to avoid late payment fees. For some, it is an uphill struggle, but with an end in sight. But for others, the seemingly unending cycle only leads them into a bottomless financial pit that they cannot get themselves out of. They are putting an already risky startup business at even more risk.
If you fall into the latter category, it might be in your best interest to reach out to a debt relief company. These people will review your situation and help you devise a way to make your life easier. Unlike you, they have experience with debt and will guide you towards your financial freedom. A debt relief program provides you a fair and workable way out of your financial problems. It helps you make payments you can afford while consequently lowering and ultimately clearing the debt.
With the rising cost of living, it can be tough to get by without loans. In fact, a 2018 Planning and Progress study by the Northwestern Mutual revealed that an average American now has approximately $38,000 in personal loans, not inclusive of mortgages. It further indicated that fewer people (23%) said they had no debt in 2018 compared to 27% in 2017. And it’s understandable. The cost of living has gone high. And the same goes for medical as well as other expenses. Even so, the income rates are more or less the same as they have been in the past few years. So if you find yourself in debt, know you are not alone.
With that in mind, let us have a look at the four tell-tale signs, it’s time to get debt management help:
When you find it hard to keep up with monthly payments
If you find yourself unable to keep up with your monthly loan repayments because of too many expenses and bills, getting debt management can be a significant step. The longer you wait to ask for help, the difficult it would be to manage your debts. As mentioned earlier, these experts are better placed to help get you out of your financial mess. They will take up your case and work it out with your creditors. This means you won’t get any harassing calls from your creditors because the company will pay them as agreed. So, instead of having to deal with several creditors every month, you will only have to pay your monthly charges to the firm.
When you feel overwhelmed by the whole thing
Debts are common for bootstrapped startups. Going by the study mentioned above, many Americans are living on debt. However, if you are losing sleep over your debt, and can’t keep calm, then it’s time to get expert help. Worrying and stressing over your situation won’t change a thing. If anything, it will only make you sick. It’s best to get the right professional. Working as partners, the two of you can come up with a solution to clear the loan; you won’t have to stay up at night because of debt issues.
If you have multiple credit cards default
Dealing with one credit card default is bad enough – but multiple is worse. Now instead of getting reminders or calls from a single credit company, you get several from different companies. That’s just one part. There is also the account management part. You have to keep tabs with all the accounts in addition to your daily tasks, family, bills, etc. Again, if you don’t pay your credit card for more than 180 days, your card goes into default. You then risk your debt being sold to the highest bidder. Instead of waiting for all these to happen, you can just let an experienced professional get you out of the situation.
When you are denied credit
When you make a credit application, the creditor will look at your credit score and report to determine the kind of risk you represent. A poor credit score, coupled with a credit report marked with missed or late payments informs the lender that you cannot pay back the money. So, no matter how promising your startup idea is, they will deny you the credit loan. A denied credit is a serious red flag, and you should get debt management help as soon as you can.