There are many ways to get debt under control without losing what you have


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Make a Budget and Get Budget Counselling


A basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you must stick to it. When you follow a budget, you can take any extra money you have each month and put it toward your debts. This will lower your total debt and save money on interest fees.


Don’t spend money on items that are not in your budget. Eventually, if nothing else changes, you will be able to pay off your debts. If you find this hard to do, see a professional budget counselor for advice on planning a budget.

Sell a Possession


A personal possession is something that you own and do not owe money on.

Selling a personal possession can get rid of some of your debt.

If you cannot earn more money or cut down your expenses, selling a personal possession can be a good idea.

Work With Your Mortgage Lender

Contact your mortgage lender right away when you run into mortgage problems. You can then work with your lender to find a solution.


Consider refinancing your mortgage to pay off your consumer


There Are Many Ways to Reduce your Debt Without Losing What You Have


Negotiate a new payment plan

with your creditors


Contact your creditors         Refinance your payments


One way to lower your debt is make new arrangements with your creditors. Make a list of your creditors and contact each one with a proposal for one or more of the following:

  • Lower monthly payments
  • Longer time period to make your payments
  • Lower rate of interest

Consolidation loan


Debt Consolidation            Combine your debts


A debt consolidation loan is a loan (usually from a bank) that lets you repay your debts to all your creditors at once.

This means that you only have one monthly payment, often at a lower interest rate than you are paying now.

This saves you money on interest fees and lets you pay off your loan faster.

The risk is that you may run up your credit cards again and be worse off than before.

Use a Trustee in Bankruptcy to make a consumer proposal to your creditors.

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.

Declare Bankruptcy wiping out most of your debts

The best way to get detailed information about filing an assignment in bankruptcy or a proposal is to contact a  Trustee in Bankruptcy. There is no cost for this and there is no obligation to proceed with bankruptcy.

Use a Credit Counselling service to negotiate a payment plan with your creditors

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.

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This is not legal advice, it is information