EARLY WARNING SIGNS OF FINANCIAL DISTRESS
If you recognize yourself here, you need financial counselling and assistance
Are you constantly receiving past-due notices on charges or bills?
Are you borrowing money between paycheques?
Are you taking out new loans to pay off old ones?
Are you behind in rent or mortgage payments?
Are you frequently relying on automatic overdraft protection on your chequing Account?
Are you using credit to meet monthly necessities?
Are you only making minimum monthly payments on credit card accounts?
Are you fully drawn on your credit facilities and unable to meet monthly payments, or pay down principal?
Are you being sued by any of your creditors?
Are your wages being garnisheed?
Do you and members of your household frequently argue about money?
Do you frequently worry about money and money problems?
How's Your Credit Rating?  Check your personal EquiFax credit bureau report on line
Find out what is in your report right now. Get the same credit score that lenders get.
Start by Getting Your Current Credit Reports
The law controlling Credit Bureaux
Identity Theft
Collection Agencies Act
Considering Credit Counselling instead of bankruptcy? Get the facts about both first.
How's your Credit rating? Find out here.
| |
What To Do If You Can't Pay Your Bills 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.
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: - 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. - 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.
- 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.
- 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.
- 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.
|
