Are you finding yourself overwhelmed by your debt load? If you are, you are not alone. In fact, according to a recent report by Certified General Accountants Association of Canada, Canadian household debt has more than doubled since 1989.
There is a short video clip on globeinvestor.com that will give you some advice on how to beat your problems with debt. Laurie Campbell, from a non-profit organization called Credit Canada, speaks with Rob Carrick about how to tackle your debt issues.
This is what the video covers:
First, you need to ask yourself: Are your expenses reasonable? Do you really need to buy all the things you buy each month?
When you take a close look at your debt situation, do you need more intervention? Have you considered a credit counseling service?
According to Laurie, creditors do sometimes agree to stop charging interest in order to try to recover the amount owed to them as well as to make their company look good. This is a great way to help you to pay down your debt at a much faster pace. Unfortunately, folks with credit card debt often make payments that only take care of their interest charges and it can take years to pay down their actual principal.
Although Canadians can deal directly with their creditors, Laurie emphasizes that if you are able to work something out with them directly, you must:
*Get the agreement in writing.
*Understand that there will be a due date. Their grace has a time limit.
*Ensure your creditors agree to the specific terms you discussed.
*Ensure that you and your creditors keep the agreement on record for at least 7 years.
The most important thing to take away from this short video is that it is important to be aggressive, not passive, when it comes to tackling your debt. Don’t hesitate to obtain help from a debt counseling service.
Also, before considering filing for bankruptcy, you might want to undergo a consumer proposal, whereby you only have to pay back a portion of your debt. This will be less impactful to your credit rating and it will not be noted as a bankruptcy. Another advantage is that you get to keep some of your assets. Check out the video for more details on how to tackle your debt.
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