The best way to handle financial difficulties is to admit to them, find out your options and take back control. If you say yes to one of these danger signs it is time to recognize that you have or will have financial difficulties and begin to take action:
1. Credit cards are a necessity and/or you pay only the interest (minimum payments)
2. You consistently find yourself borrowing money from one creditor to pay another
3. Creditors harass you
4. Your wages are garnished
5. Your utilities have been cut off
You have options:
1. Ask your creditors about making lower payments. It is usually in a creditors best interest to receive all of their money over a longer period of time than to find out you have filed for bankruptcy.
2. Think of someone in your life who manages their money well. Ask for 15 minutes of their time to help you get back on track. If this makes you uncomfortable, find out if your community has a money management counselling office. Taking action is key.
3. Do your research: Compare interest rates at several different banks for debt consolidation. This in turn will allow you to combine your debts and make one monthly payment to the bank.
4. Consumer Proposal: You may make a consumer proposal to your creditors. This involves reducing the amount of your debt and extending the time you have to pay off the debt. You should know that an administrator of consumer proposals is a trustee in bankruptcy.
5. Bankruptcy: You may choose to declare bankruptcy if affordable payments are not feasible and you do not have the ability to meet your financial obligations. At this stage, once you file, you assign all assets that are not exempt to your trustee to be divided among creditors. Exempt assets include clothing, furniture, vehicles, etc. to a prescribed limit of value.
Contact Rumanek & Company Ltd. for more information. Or please fill out the form on the contact us page for additional information. Or if you would like a free evaluation please fill out the evaluation form.
To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.