On average, Canadians between 45 and 54 years old are in more debt than other age groups, with an average debt of $130,100.
Although some debts are reasonable, such as mortgages, being in debt could be better. In some situations, debt becomes difficult, and you may struggle to meet ends.
If you’re in this situation, you might look towards finding a solution to reduce or eliminate your debt load. Crowe MacKay & Company’s Licensed Insolvency Trustees in Vancouver and Surrey share more details below on what options are available to you. If you require assistance, contact our team in Vancouver and Surrey to start your debt relief journey.
Create a Strict Budget
Making a budget should always be one of the first things you try. It’s something you can do without any assistance, so it can be a great solution for a lot of people.
You can find various free budgeting tools and calculators online to help you with credit relief. Ensure you track all expenses to know what you’re spending your money on.
Some expenses will be essential, while others won’t. You can prioritize things and should be able to start making changes and saving some money immediately.
Talk to Your Creditors
It’s your creditors that make decisions about your debt. They might have terms in place, but in some cases, they can make changes.
Contact them about your debt, and they can do something to help you out. A typical example would be to lower your minimum monthly payment and reduce interest costs. You’ll then be less likely to miss payments to avoid fines.
You can do an informal debt settlement for less than the total amount you owe. You’ll need to talk to your creditor directly as they must agree to it and make sure to have their acceptance in writing.
Bear in mind that when doing this, a creditor can only help you with their specific account. Credit counsellors and Licensed Insolvency Trustees look at your finances so that the solution could be somewhat different.
Apply for a Debt Consolidation Loan
There are plenty of people who become overwhelmed with their debt. Applying for a debt consolidation loan could be a good solution if things become too complicated. It’s worth noting that getting approved for a debt consolidation loan can sometimes be challenging, so make sure you’re still considering other options.
A debt consolidation loan can make things much easier to manage. Still, you should never use a credit card to consolidate your debts. Pay attention to things like repayment amounts and interest rates so you don’t get worse.
A debt consolidation loan can make things much easier to manage but you should never use a credit card to consolidate your debts. Make sure you pay attention to things like repayment amounts and interest rates so you don’t end up in a worse situation.
Keep in mind that your credit score will be impacted. With both methods, however, you won’t gain any financial education to help with debt management. As such, it can still be a good idea to talk to a credit counsellor, as they’ll be able to help you understand how you can avoid falling into the same situation again.
Which Debt Solution Should You Consider?
Which debt solution is suitable for you depends on your situation, and this is different for everyone. At Crowe MacKay & Company, we specialize in guiding people in debt to help them find the best solution. We can create a tailored relief plan that perfectly fits your needs so you can get back on top of your finances.
Take a look at our debt relief page to find out more about how we can help you today.
At Crowe MacKay & Company, we have over 60 years of experience and offer free initial consultations. If you have any questions regarding the information above, contact our office today and start your debt relief journey.
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This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual needs. This publication is not a substitute for obtaining personalized advice.