About Debt

A way of life
Everyone carries some level of debt. In order to purchase items we want or need, it is sometimes necessary to defer payments and take on debt. Debt is not a problem as long as you do not take on more than you can handle. Problems with debt can be caused by overspending, loss of a job, a sudden illness, divorce or seperation.

Take control
Unemployment or illness may be situations beyond your control but spending more money than you earn is something that can be controlled. Everyday you are bombarded with advertising that entices you to buy products that will fulfill your needs. Before you know it, you have all this great stuff that you haven’t really paid for yet. And you are paying for it with interest! In order to control your debt, you must control your spending. This means learning to distinguish between real needs and superficial ones.

Too much debt
Financial advisors suggest that 12-15% of your income can safely be put towards debt repayment. People residing in places where daily living expenses are high may not be able to put that percentage of their income towards paying debt. You may also want to consider what you want to do with your life and how your current debt situation will affect your financial future.

You have a problem if:

• You use credit more often than you use cash.
• You borrow money to pay current bills.
• You have trouble keeping up with your current bills.
• You often pay only the minimum amount due.
• You have reached your credit limits
• Checkbook and savings balances have gone down and credit balances are up.
• You are being contacted by creditors.
• You have stopped paying some bills.

Does this sound like you?

If it does, you should seriously consider Debt Reduction Options or a Debt Management Plan.

You don't need a home to qualify!