Is your financial situation keeping you up at night? Are the bills coming in faster than you can pay them? Does your spending seem out of control? Financial difficulties hit everyone at some point, and when you find yourself seeing red, it may feel like there is no relief in sight. At what point do you seek help?
1. Are You Unable to Make Payments to Creditors?
If your bills are piling up and you cannot make payments, this is a significant indicator that you need help. In this situation, problems tend to worsen before they ever get better; if you don’t pay your utility bills, you could end up with your gas and electricity cut off. If you don’t pay your car loans, you may lose your primary mode of transport. Interest rates will snowball the amount you owe into much larger, unmanageable proportions when you only pay the minimum payment on your credit card.
2. Do You Have a Low Credit Score?
Your credit score indicates how well you manage your personal finances. It takes into account factors like your payment history.
If you haven’t paid your bills in some time and they are piling up, chances are you will have a low credit score, making it difficult to take out loans or be approved for future credit.
3. Are You Considering Filing For Bankruptcy?
You might consider declaring bankruptcy if your monthly debt payments exceed your monthly income. There are several benefits of doing so:
While filing for bankruptcy can relieve you of the burden of a heavy debt load, we highly recommend exploring other debt-relief options too.
If you are considering filing for bankruptcy in Edmonton, we can help you with the process.
While bankruptcy is often a last resort, there are alternative solutions that might suit you better. These are less drastic than bankruptcy, which has long-term effects that can affect your credit and personal life.
Debt consolidation is ideal when you have several debts with different interest rates and payment dates. In this process, you take out one large loan and use it to pay off all your smaller debts. Eliminating several payment dates means your debt repayment is much easier to track and manage.
When your debts become difficult to manage, a consumer proposal involves negotiating with your creditors to reduce the amount of debt you owe. This process can reduce unsecured debts by up to 80%, making your debt much easier to pay off.
Both options are helpful in navigating your debt. Still, consumer proposals are particularly useful when your credit score is severely damaged, and you would not qualify for a debt consolidation loan.
During the credit counselling process, we want you to feel comfortable and take control of your finances. We will explore solutions to help manage and eliminate your debt. We will also assess your monthly income and expenditures and create a budget you can work from and get free of debt.
As licensed insolvency trustees in Edmonton with 35 years of experience, we have provided credit counselling to many individuals from all walks of life. Call us for a free consultation, and let us help you manage your debt and get a fresh financial start.
