How does one know if they have a debt problem?  There a lots of articles about the nation suffering from too much debt.  However, very little information for consumers.  Thus, to help you, there are two signs – the obvious signs and not-so-obvious.

Obvious Signs of a Debt Problem

The obvious signs of a debt problem is when you are starting to miss payments. You don’t have enough money to pay your credit card so you skip it. Or, you are 30-60 days late on an installment payment such as your car loan or mortgage. Another obvious sign is that you getting collection calls from the original creditor, collection companies, or lawyers. If you’ve been sued for an old debt, that is certainly a sign of a debt problem. And probably the most obvious sign is when your wages and bank accounts are being garnished. Most states allow a creditor to garnish 25% of your wages for an old debt. That’s a lot of money and if you’re already struggling, a garnishment is going to make your life much harder to afford.

COVID is certainly making it clear if you struggling with debt.  Unfortunately, thousands of Americans have lost their jobs due to shutdowns, quarantines, and loss of business.  While the federal government is offering some assistance; unfortunately, it will not be enough for most people to get out of debt.

Not-So Obvious Signs of a Debt Problem

The not-so-obvious signs are your mental thoughts. Do you dream of winning the lottery or getting an inheritance? Do you wish you could find money hidden somewhere or could steal it without getting caught? If you’re having wishful thoughts about getting out of debt, then it is time to look for a solution.

debt problem

Knowing when you have a debt problem can be tricky. The sooner you identify the issue, the more options you’ll have for solving it.

The final sign of financial distress is how long will it take you to repay your debts. What is nice about credit card statements is that there is a box on the statement that shows you how many years it will take you to payoff your balance. For example, if you make your monthly minimum payment, the box will state that it will take 20-25 years to payoff the debt. If you increase your payment by five times, then you can reduce to payoff to seven years. I like these boxes because it provides some insight as to whether you cannot afford to repay your debt. As a rule of thumb, if you cannot payoff your debt within five years, then it’s too much and you need help.

Solving your Debt Problem

Colorado Debt Help is here to solve your debt problem. We offer a variety of solutions: debt management plans, bankruptcy, debt settlement, and student loan relief.  The right solution depends on your debt problem.  Schedule a free consultation so we can find the right solution for your debt problem today.