Sometimes it can be hard to recognize when debt has become a problem. Many people believe that if they’re making minimum monthly payments on time, everything is fine. But it’s not that simple and in fact, if that’s the situation you find yourself in, everything is most definitely not fine. Let’s take a deeper dive into this issue and other signs you need a debt relief program.

Making Only Minimum Payments

Making minimum payments on your credit cards each month will keep your account from going into default, but it doesn’t do anything to help your credit or overall financial outlook. By making only minimum payments you’re racking up potentially thousands of dollars in interest charges over time. It could take years for you to pay off the debt and you will still be paying for purchases you’ve long since forgotten.

Missed Payments or Debt in Collections

Missing payments or having debt in collections are two more signs you need a debt relief program. Since payment history makes up the biggest percentage of your credit score, missing payments is one of the most damaging things you can do to your credit. And having debt go to collections is even worse. Not only does it damage your credit, but you’ll be also dealing with the often aggressive tactics collectors use to get you to pay.

Unable to Qualify for New Credit

If you’re having trouble qualifying for the new credit you need, or you qualify, but the interest rates are very high, it’s because creditors are seeing red flags in your credit report. When someone appears to be a bad credit risk, lenders are hesitant to lend because they think there’s a chance they won’t get their money back. The right debt relief program can help you get back on track and make it possible to be approved for the credit you need (but only when you need it).

Debt-Related Anxiety and Worry

If worrying about debt is keeping you up at night or the stress of wondering how you will pay all your bills is causing health issues, it’s time for a debt relief program. When debt reaches a point where it’s affecting your health and happiness, there’s no need to suffer through it alone. Turn to a trusted debt relief program, like those offered by nonprofit credit counseling agencies, to help you formulate a plan to get out of debt and reclaim your peace of mind.

No Money Left Over for Savings

When all your money is going to pay for essential expenses and bills, there’s nothing left over to save for emergencies. And not having emergency savings can take you further into debt, because when an unexpected expense pops up, there’s nothing set aside to pay for it. You’ll need to use either use a credit card or turn to predatory lending like payday loans.

A debt relief program can help you reach the point where you’re paying off debt and saving for emergencies at the same time.