- Money Mart:Consumer Education

Debt Management Quiz

These simple questions can be used to help you determine if mounting debt is becoming a problem in your life. There’s only one rule – answer these questions accurately and truthfully. If you answer “YES” to at least 9 of these 15 questions, we recommend that you seek a qualified non-profit credit counselor to review your financial situation.

Do you lose sleep at night wondering IF and HOW you'll ever get out of debt?
Do you get anxious/overwhelmed when opening the mail because most of it will be debts that you cannot pay?
Does the pressure from your debt distract you from work, family life or daily activities?
Are your credit card balances growing each month OR already maxed out?
Are creditors and collectors calling you at home and/or your place of work?
Are you borrowing from one source of credit to pay another?
Have you borrowed money from friends/family when money was tight and failed to pay it back?
Are your debts/borrowing habits affecting your relationships and reputation?
Do you usually expect a negative response in response to a credit inquiry?
Do you regularly use cash advances from credit cards, payday loans or the overdraft feature on your checking account to cover your basic living expenses?
Do you ever get physically ill when you think about your personal finances?
Are you living without any form of cash savings or have you depleted your savings to cover basic living expenses?
Are you using one payday loan to pay off another?
Are you only paying the minimum payments due on your credit cards?
Are you unaware of the exact amount of your total debt?

Scoring: Give yourself one point (1) for every "Yes" answer.

Results:

1-2 Points:	Your financial health is pretty stable. Keep up the good work. With this result, you can shift your focus to building your savings or setting long-term financial goals.

3-5 Points:	Your financial stability could be in trouble. Try to make a concerted effort to manage your bills and examine your progress closely. If trend doesn’t improve in the next 60-90 days, you might consider seeking help.

5-8 Points:	Caution! It seems that you are barely making minimum payments with little or no money left over to enjoy your life. With this score, you are probably spending a considerable amount of time worrying about your debt. At this point, you may need to consider ways that you can increase your current income and decrease your expenses immediately. This is also a good time to get your financial house in order. You might benefit from speaking to a qualified professional about your debt situation.

9 or more:	Red Alert! Your life is being run by your debt. Take the time to speak to a certified non-profit credit counselor to review your options for getting out of debt. A qualified professional can help you create and manage a plan that is tailored to your situation. For more information on qualified counselors in your province, visit www.creditcounselling.ca

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