Credit counselling and debt management in Edmonton

6 Signs You’re Overspending…What You Can Do About It!

There’s nothing wrong with treating yourself from time to time. However, if you notice any of the following signs, you may be spending more than you should be.

  1. Payment issues. If you can’t afford more than your minimum payments each month, it’s a clear sign that you’re spending too much. Similarly, if you find yourself with a stack of unpaid bills this is a pretty strong indication that you should cut expenses and rethink your finances.

  2. Plastic only. A strong sign that you’re overspending is if the only payment method available to you is your credit card. This is especially true if you often worry about your card being declined or if you’re always hovering close to your credit limit.

  3. Shopping for the sake of it. Treating shopping like a hobby or therapy is common, but it can quickly become expensive. If your first reflex when bored or anxious is to hit the mall, you should probably re-evaluate the way you spend money. New purchases lying around and going unused is another sign you need to curb your impulse shopping.

  4. Problems saving. If you’re unable to build up your savings or are dipping into your rainy day or retirement fund, it’s probably time to ease back on shopping and write up a budget.

  5. No emergency fund. If a layoff, medical problem or other drawback would likely cause you to be unable to meet your financial obligations, it means you should start building some savings. If you can’t afford to do so, cut nonessential spending as soon as possible.

  6. Your credit limit is too high. As a rule of thumb, your credit limit should be low enough that you could pay all of it down with your monthly income. If that’s not the case, you might end up carrying an increasingly large balance, which can seriously harm your capacity to accrue savings.

 

What You Can Do

Developing sound financial habits isn’t easy, but the first thing to do is to get a clear picture of your financial situation, ideally with the help of a debt counsellor. He or she will also be able to help you understand what options are available to you and suggest debt management techniques and solutions such as developing a budget through credit counselling or working on a debt consolidation.

 

Credit Counselling Available in the Edmonton Region

For trustworthy debt management advice, you can turn to Fox-Miles & Associates Inc. As a licensed insolvency trustee, we offer trusted, friendly and non-judgemental financial help to people from Edmonton, St. Albert, Leduc, Stony Plain and more. Contact us today for a free consultation and to find your way to financial freedom.

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