We ought to know just what the warning signs are if you are in debt. It is important to identify as early as possible what is happening with your finances. Then you can rectify it. Sometimes, we might just temporarily have a cash flow problem, in which case a payday loan can help. You can find that getting a cash advance is easy in Canada. This is because payday loans are unsecured ones. It makes them more freely available to Canadians temporarily struggling to juggle their finances to pay bills.

Anything that costs money is laden with risk. When you are borrowing money to buy something, numerous things can go wrong. Sometimes, though, you can tell when you are in trouble by the way you are getting charged interest. If your credit card is charging you 17% on top of the purchase price, then you have probably borrowed too much.

Debt is a very common problem for many Canadians. In fact, according to Equifax Canada, rising mortgages balances were responsible for increasing the average debt in Canada to $73,532 per person in 2020. This mortgage debt will eventually need to be repaid, although it does relate to a longer-term loan.

Although some people do have debt problems, many of us are capable of doing things to improve our finances. Having a positive attitude about money will help you to manage your debt and make responsible financial decisions.

When you find yourself drowning in debt, finding out that warning signs will help you get yourself out of the fire can be a lifesaver. Some of these signs should be obvious, like if you’re spending all of your money on credit cards, but others are more subtle. Here are five that you should look out for.

  • You’re being denied loans

If you are denied the loan you want, you may be surprised, but this may be a sign that you have a debt problem. There are many reasons why you may be denied the loan you want.  It could be because the bank wants to make sure the loan will be repaid.  It could be because you do not want to borrow the loan.  It could be because the bank is making sure the loan is good for them, or them determining that you are not interested in borrowing the loan.  It could be because the loan is simply not the product the bank wants to make or sell.

  • You’re relying on cash advances

If you are receiving cash advances on your credit cards, you are more than likely in debt. People use cash advances as a means to get out of debt, but they are not meant to be used as a long-term solution. Cash advances are designed to give you enough money to pay off your debt and not buy you things you cannot afford.

  • You’re struggling with debt collectors

In some cases, struggling with debt collectors is a sign that you have a debt problem. If you’re having issues repaying your debt, you may have been misinformed about the time it takes to pay off a debt, or you may have unrealistic expectations about how much you can afford to pay. You may not have realized that a debt collection agency has already been hired to collect your debt. If you have grounds to dispute a debt, you can send a dispute letter to the collection agency, asking them to remove your name from their lists of debtors.

  • You don’t have a budget

People who don’t budget their money end up with a lot of debt. How do they end up in debt? Well, most often, these people invest more money than they can afford to lose. For example, they might buy a new computer, a new TV, or a new car. When the investment doesn’t pay off, they end up back where they started.

  • You’re having trouble paying your bills

Now and again, there comes a bill that you simply can’t pay. Maybe you’re a student living on a budget, a salaried worker trying to make ends meet, or a freelancer whose contract has been extended. Regardless of the situation, it’s time to take a look at your finances. You may have a debt problem.

​Living paycheck to paycheck has to be the number one financial stressor in Canada. The most common reason cited for struggling to pay bills is not having enough money to meet long-term expenses. Some of these are unavoidable, such as family emergencies, unplanned, unanticipated expenses, and medical emergencies. Others are the result of poor financial decisions, such as overspending on experiences, overcompensating for mistakes, or blowing through savings.

A short-term solution to a debt problem in Canada, particularly when you do not have assets to fall back on, is the payday loan. Taking one out can at least mean that you maintain your current lifestyle until you hit more lucrative financial times.