- Money management Skills
The key to managing your financial life is really quite simply. - Create a budget: List your “average” monthly income and expenses on some sort of spread sheet. Start by doing one “average” month. From this you will be able to see what if any “goals” you can set for yourself including reducing some expenses for possibly increasing your income and how long it should take to pay off your debts.
Realize that a lot of what you are buying is not necessary. Don’t waste your money by giving in to impulse buying. Get rid of most of your credit cards as soon as you can pay them off and go to a “cash” system where research shows that you are less like to be caught in an impulse buy.
You can get free help with budgeting and other money management skills, from a professional credit counsellor such as at C.E. CRAIG AND ASSOCIATES INC and Victoria British Columbia.
- Get a Debt Consolidation loan
Replace your unsecured debts with a consolidation loan, with one monthly payment, a lower interest rate, and possibly a longer payment period. If, like most people, you have much of your unsecured debt in high interest credit cards, the lower interest cost will make it much easier to get back in the black.
- See a credit counsellor and consider a Debt Management Plan
A credit counsellor can help you build money management skills, and may negotiate with your creditors to set up a debt management plan with a single monthly payment and lower interest costs, spread over up to five years.
- See a Trustee in Bankruptcy to File a Consumer Proposal
As soon as the proposal is filed, your creditors are prevented from taking you to court or garnisheeing your wages. They have 45 days to accept your proposal. Once accepted, a proposal is legally binding on all your creditors and stops all legal actions against you.
In most proposals you end up paying no further interest on your debts, and you pay less than the full amount owing, because your creditors would rather accept a deal where they get something, than have you file for personal bankruptcy where they will get less.
A proposal is better than bankruptcy for you too. You get to keep your house and other assets. At the end of the proposal period, your debts are discharged, and your credit is not as badly affected as in a bankruptcy.
- Bankruptcy in Canada is your final option.
If you cannot pay even a significant fraction of what you owe, you can file for bankruptcy, through a bankruptcy trustee.
There are many options available to you to solve your financial puzzles. Talk to a trustee in your area now for you free appointment to make sure that you understand all of your options.