Tag Archive for get rid of debt

What to do if you Have too Much Debt

August 5, 2019 Debt No comments
debt

Are you drowning in a sea of student loans? Do you have too much credit card debt with the interest rate piling up?

Being in debt can be stressful and can cause a lot of anxiety/worry. It is due to this anxiety that people don’t even bother getting their financial problems fixed. Every time something reminds them about their debt they choose to run away from it; in an attempt to ease some mental pressure.

debt

Here are a few tips that will help you deal with the stress of being in debt and also get out of it as soon as possible.

1. Find ways to earn more money

?How can I afford it?? opened up the brain and forced it to think and search for answers.?

? Robert T. Kiyosaki, Rich Dad, Poor Dad

Most people(who are in deep debt) are less likely to change their spending habits and lower their standard of living. If you are one of these people, then getting out debt should consequently be easy as you have the leverage to work hard and earn more money.

If you are not the entrepreneur-type than consider getting another job that pays well in the short term. Many jobs pay well and don’t require much physical effort. The formula to pay off your debt is quite simple. Earn more, pay off your debts and continue to live a flamboyant life.

2. Live frugally

Living frugally is another thing you can do if you have too much debt. Some cultures like Chinese, Indian and Japanese are purely based on living a minimalistic life and finding joy in things that are naturally available to for free.

Consider learning about these cultures and cut down your spending by 60-70 percent. You can use the saved money to pay off your debt and become free in no time.

3. Debt Management Plan

If you have too much debt and managing it by yourself is not possible then you should sign up for a Debt Management Plan. Debt Management companies work with lenders and creditors to lower your overall debt. They also help you lower your interest rate and negotiate a longer repayment plan. This plan is a blessing for people who don’t understand personal finances that well and are in a desperate need for help.

4. Personal Bankruptcy

This is the final solution and should be exercised when you are left with no other options. Most people declare personal bankruptcy when they run out money or their business fails and they have no source of income left. Declaring bankruptcy will clear most of your debt but some debt-types like alimony/child support are nondischargeable.

Summary

Getting out of debt may seem like a huge mountain to climb but it is not that difficult. The best way to clear your debts as fast as possible is by changing your spending habits and seeking advice from a finance expert. Once you know how much debt you owe to every creditor, it becomes easy to follow a payment schedule; which will work as a reminder so that you don’t forget to pay your bills on time.

3 Options for People Dealing with Debt

July 23, 2019 Debt No comments
Dealing with debt

Being in debt is not unusual in today?s economy. A number of people suffer from hefty student loans, owe money on their homes, or are struggling with credit card debt. Often, it?s not even a matter of overspending, but rather just the fault of circumstance and harsh economic times. For many, it?s a living nightmare that constantly plagues their every thought to the point that they are afraid to answer their phone because it might be a call from a collection agency.

Dealing with debt

There is a light at the end of the tunnel, though: people like the Counsellors at Credit Canada Debt Solutions can help you make the right decisions when it comes to paying off your debt. They?ll walk you through a few options like the ones below.

Debt Consolidation Loans

A debt consolidation loan is when you ask a lender to take on all of your unsecured debt (credit cards, personal loans, bills, etc.) as a single, combined loan, allowing you to pay less interest over time. If you apply with major banks or a credit union you will receive a number of benefits, including:

  • Single monthly payments
  • Often a lower, set interest rate
  • Generally no fees

While consolidating your debt with a bank or credit union can help you pay it off faster, there are also disadvantages. For example:

  • You need a good credit score to be approved
  • Collateral like property or other assets may be required
  • Interest rates may be high, especially if you are a high-risk borrower
  • Access to credit allows you to continue to accumulate debt

Unfortunately, even if the debt gets paid off using a debt consolidation loan, poor spending habits will put some people right back where they started, or worse. That?s where a Credit Counsellor can help.

Debt Consolidation Programs

Unlike getting a loan from a bank or credit union, a Debt Consolidation Program or DCP involves working with a Credit Counsellor who will consolidate all of your unsecured debt into a single monthly payment. They will also negotiate with your creditors to eliminate or reduce interest and work with you to put together a payment plan, guiding you every step of the way. You can also expect:

  • Interest relief in many cases
  • Lower single monthly payments
  • Easy transfers by telephone banking, debit card, or money order
  • Automatic and tracked payments to creditors
  • Qualified counselling and coaching

Imagine having someone on your side providing judgement-free advice and there to stop creditors from constantly calling you. Credit counsellors are ready to fight for your best interests.

Consumer Proposals

A consumer proposal is when you make a legally binding agreement through a Consumer Proposal Administrator (or Licensed Insolvency Trustee) to pay off a portion of your debt to your creditors. You?ll receive immediate protection from collection companies, interest accumulation will cease, and the payments will remain the same even if your income increases.

The problem with consumer proposals is that they, like bankruptcy, are considered a form of insolvency and will show up on your permanent record. It can also be difficult to qualify for because you need a good paying job with a steady income.

Which Works for You?

You definitely have options when it comes to paying off your debt, but a Debt Consolidation Program is generally your safest route. With a certified Credit Counsellor you?ll have the support you need to achieve your goals and pull yourself out of financial misery.