3 debt relief decisions borrowers should think about now

Debt is a growing problem. The latest consumer data shows that total household debt has surpassed $18 trillion and consumers owe a record $1.21 trillion in credit card debt. With so many consumers owing so much, some may be wondering: Is now the time to get help with my debt?

Knowing the answer to that question is a lot easier if you periodically reflect on your financial health. In doing so, you give yourself a financial check-up that could reveal warning signs in your finances. Catching those red flags early can put you in a position to be proactive about your debt and, if needed, reach out to a debt relief company for help.

That being said, asking for help is never easy, especially when it comes to debt relief, says Nia Adams, executive director of financial wellness consultant Perspectives. 

"Some people avoid debt relief [and] they find themselves irritable, not being able to sleep at night, not that pleasant to be around and overly anxious," Adams says. "Sometimes it takes people a long time to decide they need to ask … for help." 

If you're concerned about your debt load and considering getting help from a debt relief company, it's important to examine the below three areas of your financial life now. 

See how debt relief can help you with what you owe here.

3 debt relief decisions borrowers should think about now

Reflecting on your debt can be difficult, but exploring the three areas below will help you make a better decision about debt relief:

Your ability to handle your debt load independently

Consider whether you can truly handle your debt independently or if your credit card debt and loans are growing beyond your control. For example, a consistent record of on-time credit card payments can mean you can handle your debt on your own. However, if the balances on your credit cards are growing because of their high interest rates even though you're making on-time payments each month, it's a sign that you may not be able to handle your debt independently.

Additionally, if you can't seem to come up with a plan to control or pay down your debt, you may need to turn to the expertise of a debt relief company that can provide options and advice.

Get help paying off your debt now.

Your time frame 

Another factor to look at as you consider whether you need a debt relief company is the time it will take to pay off your debt. For example, if you have a $15,000 credit card balance and an upcoming financial windfall to pay off the debt within months, you may not need debt relief help. 

However, if you can only afford the minimum payments on your credit card balance and it could take more than a decade to pay it off, it may be a sign that you need to bring in an outside expert. Debt relief companies can typically help you pay off your credit card debt in two to four years through credit card debt forgiveness for qualified borrowers.

Debt relief companies also offer debt management plans, through which they negotiate lower interest rates with your creditors, a move that could potentially help you pay off your debt faster if you're stuck in a cycle of minimum payments and increasing balances due to high interest rates. 

Your overall spending habits

Getting help from debt relief is only as effective as your ability to control your spending. If what you spend monthly exceeds what you earn and you don't change that after seeking help, it's likely that debt relief won't solve your debt issues.

Multiple tools exist to help you curb bad spending habits, such as budgeting apps that can track and plan your spending, and budgeting techniques like the envelope method. These tools can give you a clearer picture of where you're spending your money, what spending is necessary and where you can cut back. 

But if you've used these tools and you still can't curb excessive spending, credit counselors can be a great resource. Often, they provide advice on how to wrangle your expenses and create a budget that helps you gain control of your finances. 

The bottom line

Honesty is a critical part of tackling your debt. Asking yourself if you can handle your debt independently, how long it will take to pay off your debt, and if you have any underlying spending habits that foster more debt can go a long way in helping you know when it's time to seek debt relief to help manage what you owe. 

If you decide now is the right time to hire a debt relief firm, be methodical about how you choose your company. Make sure you research your options and the debt relief process, Adams says.

"All debt relief options are not created equal," she says. "Research and educate yourself on the different companies … Make sure it's a reputable company that's a help and not a hindrance. Research what the [debt relief] process looks like so you're more knowledgeable and empowered as you navigate it."