The fact that over 130,000 Canadians will file for insolvency over the next 12 months, while another one million consider themselves to be close to bankruptcy, paints a pretty clear (and bleak) picture of how easy it is to become overwhelmed by debt.
It may seem as though there is no way out, but it is possible to repair the damage and work your way towards a brighter future.
The key is to take charge of the situation right away.
No matter how deep you’ve fallen into the financial hole, BankruptcyCanada will provide the helping hand needed to drag you out.
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Analyzing Your Financial Situation
It’s impossible to find a solution to your problems if you never truly appreciate the severity of the situation.
A full financial audit is the first step to restoring your financial health, and can achieve a number of positive outcomes.
- Gain a full understanding of your income.
- List all expenses, categorizing them as necessities and luxuries.
- Identifying sources of financial waste, such as interest charges.
Once you have achieved true clarity, it’ll establish the strongest platform to build upon.
Small Changes, Big Results
When faced with significant financial issues, the natural inkling is to seek the ideas that could transform everything.
However, the seemingly small and insignificant changes can have a telling influence.
Better still, their impacts can be felt with immediate effect while also establishing the right mindset ahead of the biggest alterations.
The new financial strategies should be designed to reflect your lifestyle and circumstances, but common examples include:
- Switching the daily coffee shop run for a home brew.
- Cutting back on restaurant trips for homemade meals.
- Quitting cigarettes or reducing alcohol intake.
- Using a bicycle for transportation purposes.
- Learning to repair and upcycle items rather than replace them.
In addition to reduced spending, you may want to investigate ways to increase your earnings.
This could mean speaking to your boss about the promotion you deserve, or starting a side hustle.
Money management improvements focused on daily habits, and choices are great.
However, you also need to consider the short-term and long-term tactics needed to escape debt.
Without addressing those issues, they will continue to take a toll on your daily life.
The sooner you act, the sooner you can find the path to financial security.
Both the immediate and ongoing steps may include very significant financial decisions.
Some examples that you may wish to consider include:
- Filing consumer proposals or bankruptcy.
- Rebuilding credit scores and finding co-signer deals.
- Establishing a Debt Management Program.
- Handling major assets, such as your property or vehicle.
- Understanding your secured and unsecured debts.
Escaping debt and building a better financial future requires a lot of hard work while it may take a long time for the true benefits to be unlocked.
However, the weight of stress will instantly lift from your shoulders.
Once this happens, you’ll no longer feel overwhelmed or defined by your past mistakes.
For further support in escaping debt and managing your finances, send us an email today.