4 DEBT MANAGEMENT OPTIONS TO CONSIDER
Interest charges keep piling up, making the situation feel hopeless. The licensed insolvency trustees and debt counsellors at Fox-Miles & Associates Inc. want you to know that debt does not have to be futile. We specialize in relieving financial distress by offering debt-help solutions in Edmonton and the surrounding areas.
Let’s talk about some debt management options and weigh the pros and cons of each.
OPTION #1: MAKE THE MINIMUM PAYMENTS
Our bankruptcy trustees have noticed that in some situations, people don’t even make the minimum debt payments each month (e.g., on a credit card, overdraft, or line of credit). Often the person in debt feels like there is no point – the amounts owing seem so significant, and the minimum payments seem so small.
While the minimum payment may seem insignificant, failing to make it can have a significant consequence – missing the minimum payment can negatively impact your credit score. As such, at the very least, you should be making the minimum payment each month. The pros of this option are that it is relatively easy, protects your credit score, and keeps you in good stead with creditors.
The con is that paying down your debt will take a long time if you only make the minimum payment. The other major con of this debt management option is that it is expensive, as interest will continue accumulating on your debt each month.