When to Seek Credit Counselling – The Early Warning Signs

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Financial problems can seem to creep up on us out of nowhere. It’s surprising how many people seem to be doing fine with their finances and then within a fairly short amount of time they encounter serious financial difficulties. Many times, the truth for a lot of people who find themselves in this situation is that they missed the first signs that there was a problem until it was too late.

With really easy access to credit in Canada, high levels of personal debt, and an uncertain economy, a lot of people are at risk of financial difficulty in the future.

What to Watch Out for – Signs of Financial Problems

If you’re feeling uneasy about your finances, that alone can be one of the first early warning signs of financial trouble. 

To help you figure out if you’re vulnerable, here are a few telling signs that can reveal the early stages of financial problems:

  • You freely use your debit card presuming money is available (but you’re not always confident the funds will be there)
  • You regularly use your credit card in place of your debit card or cash for normal expenses
  • You only pay the minimum amounts on your credit cards
  • You do not have a spending plan or budget to keep your expenses in line
  • You sometimes find yourself spending more than you earn
  • You barely have any savings available to handle seasonal or annual expenses or emergencies
  • You find yourself counting on your overdraft or line of credit to handle your expenses for the month
  • You have withdrawn money out of your RRSPs or TFSAs to manage urgent financial situations

If it seems as though two or more of these warning signs apply to your situation, then it’s time to take a hard look at your overall financial picture and how you are handling your finances. 

Remember, if you and your family are experiencing any of the financial warning signs, we are here to help. Give us a call today and start your journey to financial health.