• Monthly payments to creditors exceed 20% of your take home pay (not including your rent or mortgage).
  
• Using your savings to pay for daily expenses.
  
• Not having any savings at all
  
• Not knowing how much you owe.
  
• Arguing with your family members over unpaid bills or money problems.
  
• Are you always worried about money
  
• Behind on your credit card or loan payments
  
• Creditors and collectors calling with payment demands
  
• Using your credit cards to pay bills
  
• Afraid to open your mail or answer your phone
  
• Creditors constantly hounding and harassing you for payment, threaten legal action, or hire a collection agency
  
• Are there threats of or actual Court action against you?
  
• Creditors lawsuits, repossessions or have judgments against you
  
• Your wages have been garnisheed
  
• Loans or Credit Refused
  
• Gambling Losses
  
• Are you struggling to meet your rent or mortgage or car payments?
  
• Are you making minimum monthly payments on your debts?
  
• Are you borrowing money from family or friends to survive from one payday to the next?
  
• You continually go over your credit limit
  
• Your credit cards are used as a necessity rather than a convenience
  
• Bounced cheques
  
• You use pay cheque cashing companies frequently
  
• Are you always in overdraft?
  
• You pay only interest or service charges monthly, resulting in no reduction of your outstanding debt
  
• Utility companies have cut off service due to unpaid bills

You cannot hide from money problems

Help Yourself Now
. You cannot run or hide from your debts. You cannot ignore them They will not go away. It is far better to face the music and deal with your problem head on. You will feel better and live better if you do.

Know you are not alone.
Over 110,000 Canadians declare bankruptcy and get a fresh start and a clean slate every year. Most are glad and relieved they did. The focus of the process is to help you organize your finances and develop new skills. It is not intended to punish an honest individual for their misfortunes or mistakes

Where do you start? Right here. Right now.
Keep in mind that your credit rating is probably already ruined so any of the following steps will not hurt it. In fact, in time, these steps will improve your credit rating.

You have five basic options available:
1. Negotiate with your creditors
   The first step in trying to resolve your debt problem is to pick up the phone and contact your creditors and try to work out a payment plan. It may be helpful to explain your situation and reiterate your willingness to work with the creditor to catch up on your overdue bills.

2. Consolidation Loans
   Use only if you are able to control your spending. If you can get a consolidation loan, this may solve your problem. However many people who consolidate just run up their credit cards again and are worse off than before the loan.

3. Credit Counselling Services
   Credit Counselling services can work out a lower payment plan with your creditors for you. They charge fees despite their touted "non profit" status. The fees are usually hidden and deducted from your payments. Credit counselling plans will take years to pay off your debts.

4. Consumer Proposals
   A Consumer Proposal is a means to negotiate with your creditors for the reduction of you debts and/or extension of time for payment of their debts. The payment schedule that is created in consultation with a your advisor is based on your income, living expenses and family creditors. It prevents your creditors from taking legal actions to seize assets or garnishee wages.
   

5. Personal Bankruptcy
   The best way to get detailed information about filing an assignment in bankruptcy or a proposal is to contact a trustee listed in the CanLaw Directory of Trustees in Bankruptcy on CanLaw. There is no cost for this and there is no obligation to proceed with bankruptcy.