If you feel as though the debt that you are in right now is becoming unmanageable, then there are steps that you can take to try and stop yourself from spiralling.
Here’s what you should do if you are facing excessive debt you cannot repay.
Make a Budget
Making a budget is a very important step if you want to try and take control of your finances.
A budget is essentially a roadmap for your finances.
It essentially tells you how much money you have coming in, where it comes from and also, where it needs to go.
If you want to build a budget properly then you need to identify how much money you have coming in and how much you are spending on your expenses and your debts.
You should make sure that you include things like your loans at this point.
Your expenses have to include all living expenses, including your mortgage, insurance and groceries.
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Contact a Licensed Trustee for a Free Debt Relief Evaluation
Check your Credit
Lenders want to know if you are able to pay all of your bills on time or not.
Your credit score will essentially go up and down based on the information that is on your report.
If you make regular payments on time then your score will go up, but if you miss payments then it will of course, go down.
If you know that you have a good credit score then you may be able to borrow money at a much lower interest rate, while also paying less interest over time.
If you have a bad credit score, then this can make it very difficult for you to qualify for any kind of loan.
Improving your credit score will take time, but at the end of the day, there are many things that you can do to help yourself, which include using a secured credit card.
When you have taken the time to create a budget and develop a plan overall, you then need to try and put everything into action.
It doesn’t matter whether you have chosen to make your own plan or whether you want to work with a counsellor because being consistent is vital.
You need to make sure that you are able to make your minimum payments and you also need to be realistic too.
If you haven’t done this yet, then now would be a good time for you to try and hire a professional as they can work with you to make sure that you are being given the support you need.
If you feel as though you are not able to get on top of your debt by using the above tips then it may be wise for you to look into debt consolidation.
If you live in Canada then a consumer proposal may be a very good option, so you should try and look into this as soon as possible.
What Should I Do When Facing Excessive Debt?
If you need some guidance with your debt then contact Bankruptcy Canada today.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?