How much debt is too much debt? These days, a lot of Canadians worry about some form of consumer debt. That’s further supported by the numbers, with every Canadian owing about $1.71 for every dollar of disposable income they have, the CBC News reports. If you’re in the same boat, here’s how to figure out if you have too much debt or not?
What’s your take-home pay?
How much of your pay is going towards your debt payments? Ideally, those payments should not exceed 10 to 15 percent of your take-home pay. If you use too much of your income for debt payments, though, then that’s a sign that you may be way in over your head. It may be better to get help from a 4 Pillars debt relief consultant in Victoria for putting together a sound financial strategy for beating debt.
Are you making minimum payments?
Minimum payments aren’t the best way to pay off your debt. That’s because most of your money will only cover payments for the interest. That essentially means that you’re paying more than you should. Put a stop to that. Start by going beyond the minimum payments to your creditors. If that’s not possible because you can’t afford to pay more, then that’s another sure sign that you’re clearly in too much debt.
Are you getting help?
It’s easy to acquire debt and go on a downward spiral from there. All it takes is missing out on a few payments, and you could end up with a pile of expensive bills. Don’t wait until things get worse. Look for a 4 Pillars debt relief consultant in Victoria. Consult and find out what your options are. From debt consolidation to solid plan execution, you can eliminate debt from your life one careful step at a time when you have an expert to help you.
Disclaimer: All 4 Pillars Debt Relief Specialists are independent consultants that represent and advocate for the debtor during their insolvency and throughout their financial rehabilitation. 4 Pillars Debt Relief Specialists are not Licensed Insolvency Trustees, Lawyers, or Non-profit Credit Counsellors.