What Can I Do if I Can’t Pay My Bills?
Help, I Can’t Pay My Bills
If you’re struggling to pay your bills, you’re not alone.
More than a third of Canadians have difficulties managing their day-to-day finances and keeping up to date with their bills.
Whether you’re experiencing problems because of rising interest rates, a loss of income or spiralling debt, you can take control of your finances and begin to reduce your liabilities.
If you want to know, what can I do if I can’t pay my bills, take a look at these top tips for dealing with financial difficulties…
1. Recognize your situation
Many people ignore looming financial problems, simply because they don’t know how to deal with them.
Unfortunately, this can result in higher debts and infinitely more stress.
If you’re already experiencing financial problems or you know you’re going to have trouble paying your bills in the near future, address the situation head-on and acknowledge what’s happening.
2. Understand your finances
Do you know where all of your money is going?
If you’re struggling to pay your bills, it’s time to create a detailed budget so you can track your income and expenditure.
If you choose to approach lenders and make consolidation or repayment proposals, they will ask for this information.
By making a note of where your money is going now, you can get ahead of the game and gain an insight into your own spending patterns.
3. Identify the essentials
Some bills are classed as essential because they’re vitally important.
You rent or mortgage, utility bills and food bills are essential, for example.
However, other outgoings may not be quite so critical.
If you’re still paying for unnecessary services, like multiple streaming subscriptions or costly gym memberships, now might be the time to stop.
Remember – you’ll need to check your contract and contact the company first.
Many services have a minimum signup period, so you could face additional charges if you suddenly stop paying.
4. Increase your income
If your budget shows that your income simply doesn’t cover your essential spending, increasing your revenue could be a viable option.
If you’re finding it difficult to pay your bills because you’ve lost your job, for example, you’ll naturally be looking for other roles to apply for.
However, you can boost your income even if you’re already in full-time employment.
Cashing in investments or selling high-value assets could give you a one-off income boost, while starting a side hustle could be a good way to add an extra source of long-term revenue to your budget.
5. Get debt relief help
When you’re experiencing problems with debt, one of the best things to do is to seek specialist help.
With confidential advice from debt advisors and trustees, you can find out exactly what options are available to and what financial support you may be entitled to.
Many lenders will accept reduced payments while you’re experiencing financial hardship, for example, while others offer payment holidays.
Alternatively, you may find that making a consumer proposal or filing for bankruptcy is the best course of action.
Resolve Debt Problems Now
As soon as you start to fall behind with repayments, your creditors will start to contact you.
Although it’s tempting to ignore these letters and calls: DON’T.
In many cases, creditors can support you when you’re struggling but you do need to be honest with them about your situation.
Ignoring them won’t make them go away, so bite the bullet and get in touch with creditors to explain what’s happening.
Experiencing financial problems can be extremely stressful, so don’t be afraid to ask for the help and support you need.
Some people begin to develop symptoms of stress and anxiety due to a change in their financial situation, so be sure to access medical advice if you feel your wellbeing is being affected.
Contact Bankruptcy Canada Today
When you’re short on cash, you’re a prime target for scammers who are looking to prey on vulnerable people.
To ensure you’re not at the mercy of unscrupulous people or companies, you’ll want to contact a debt relief service provider you can trust.
Here at Bankruptcy Canada, we have over 20 years’ experience and have helped over 200,000 Canadians resolve their debt problems.
If you’re struggling to pay your bills and what to know what to do next, call us now on (877) 879-4770 and we’ll be happy to help.