Where Do You Stand Debt Wise?

Before you take any steps or consider any counselling or bankruptcy options you should assess your debt position. By completing the following questions you will be able to quickly assess how you deal with your money and if you need help. Answer each question honestly to evaluate your personal repayment capacity.

1. Do you spend more than you earn on a monthly or yearly basis?

1. Never

2. Sometimes 

3. Often

4. Always

2. How many different credit cards do you have?

1. 0

2. 1

3. 2 

4. 3 or more

3. Are your credit cards at the credit limit or over it?

1. Never

2. Sometimes

3. Often

4. Always

4. How much of your monthly instalment payments go towards paying interest only?

1. 20 %

2. 20 to 50%

3. 50 to 75%

4. over 75%

5. How much of the time do you pay the minimum amount due each month, or less?

1.  20 %

2. 20 to 50%

3. 50 to 75%

4. over 75%

6. Do you use one credit card to pay another?

1. a. Never

2. Sometimes

3. Often

4. Always

If you have answered “A” to most or all of the questions, you are doing very well and have debt under control.

If you have answered “B” to most or all of the questions, your debt is manageable, but should not increase.

If you have answered “C” to most or all of the questions, you are in the danger zone of being able to manage and reduce your debt to a sustainable level.

If you answered “D” to most or all of the questions, you need to look closely at your debt situation and speak with a credit counsellor as soon as possible to consider the best way to get back on track. Reduce your debt in credit cards, loans and other debt areas.

Do you know your debt load? Download this debt calculator by clicking here.