Assessing My Financial Situation
Taking control of your debt is like breaking any other habit, such as smoking. The first and most difficult thing to do is to convince yourself that you really want to control your debt! If you really want to do so, I guarantee that you can do it.
Consider Bill’s story. Bill is 28 years old; single, with a well-paying job. He has lots of debt and financially is just limping along. He has a big car loan, lots of credit card debt, and a poor credit rating.
We all hate budgets, but they are vital if you want to take control of your debt. Bill and Shirley persevered and set up a plan for Bill to have his debt under control within three years.
Bill always paid lip service to getting control of his debt but never really got serious about it.
Then one day Bill became really motivated about taking charge of his debt. What happened? Bill met Shirley and after a few dates he knew this was the woman for him! He started to think of marriage, a house, and children.
Here is how Bill, with lots of help from Shirley, did it. They knew that in order to fix a problem they first had to understand it and identify how bad it really was. They wrote down all the debt Bill had incurred and the interest rate of each debt. Then, they identified all Bill’s assets and listed all of his income and expenses. Sounds like the dreaded “B” word doesn’t it? BUDGETING!
They listed Bill’s debt in the order of the interest charged; and started to pay off the debt with the highest interest rate first and worked their way down the list. Bill was surprised that once he was on the plan he and Shirley had set up, it wasn’t that bad. In fact, he got a tremendous amount of satisfaction out of gaining control of his finances and setting up a solid plan for their future.
You can take the same steps as Bill did. Evaluate your personal financial situation and then take a look at some of the strategies set out here.
If you have any questions about this or other aspects of bankruptcy or consumer proposals you can set up a FREE consultation with our trustees, who are in every province and territory in Canada.