Debt (and Too Much Debt)
Debt, Rent Payments
Debt can be a touchy subject. You may have noticed that there are more billboards, radio commercials and online advertisements for “debt solutions” than ever before. It’s no secret that consumer debt is extremely high and has been growing consistently over the past several years. The fact is that it’s easier than ever to borrow money and easier than ever to spend it quickly! This is a dangerous combination that can – and often does – result in many people getting in over their heads in debt.
Do you have debt? How do you know if you have too much debt? There’s a difference between the two, however there’s not always a lot separating them.
There are various types of debt that you can get from many different places. The most common debt includes that from credit cards, lines of credit and personal loans, which are typically used as a convenient way to finance our day-to-day purchases. Then there is debt that we leverage to purchase things we normally don’t have the cash on hand to purchase, such as cars and houses. When used effectively and in conjunction with a strong budget, these forms of debt can be harmless and can even be quite beneficial to your personal finances. However, when mismanaged or when used without regard for your budget, it can result in too much debt.
Too much debt is where you have more debt than you can hope to repay given your income. Too much debt does not happen overnight. It is typically accumulated over a number of months and years. When you have too much debt, it feels like you have a financial “leaky bucket” meaning no matter how much money you seem to throw at it each month, your debt just continues to grow.
How can you know if you have too much debt? Aside from the obvious growing account balances, you may have too much debt if you experience any/all of the following:
• Using one credit card to pay another
• Regular visits to payday loan or quick cash outlets
• Collections calls at all hours of the day
• Missed or late rent payments
• Repossession of vehicle, home, etc.
• Garnished wages/salary
• Seizing of bank accounts or other assets
• Lawsuits being filed against you
Repercussions of too much debt can be devastating:
• Poor health (due to sleepless nights, anxiety, etc.)
• Deteriorating relationships, due to “financial fighting”
• Overall negative outlook on life
Unfortunately, if you find yourself in this position it is highly unlikely that you’ll be able to simply budget your way out of it. In fact, a strong budget can help identify this at an early stage, which gives you an opportunity to take preventative action. However most people don’t recognize the warning signs and eventually it gets to this stage.
The good news is that there are highly effective, government approved options that are designed to help get you out from under too much debt. It is often not an easy decision to make but by working with a qualified professional you can be confident that you will make the best decision for your circumstance.
The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
In October 2021, the LCB organization re-branded some of the services it offers under FrontLobby. Until this point, the LCB organization has consisted of two companies handling different services under the umbrella trademark of Landlord Credit Bureau. The introduction of FrontLobby enables each company to maximize its focus and impact. Read More
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