Don’t let Black Friday & Boxing Day Debt Follow you into 2015Dec 23, 2014
Debt does not happen overnight; life events, like job loss or divorce can get in the way of our saving plans for retirement. At this time of year, we can be tempted to take advantage of holiday discounts and savings offered by every retailer. With this temptation, we must become conscious of our spending, budget limits and ongoing financial needs for the future.
How do you stay the course?
- Avoid unnecessary debt – go into the season with a list and a budget!
- Do not extend you limits beyond your budget.
- Ask yourself, is this item necessary and is it in the budget.
- If you answer ‘yes’, can you remove other planned purchases to stay the course? If the answer is ‘no’, then the item probably is not a priority.
What can I do if I now feel the dark day of debt is on the horizon?
If you do reach the point where you can no longer manage your debt, a licensed trustee can quickly intervene and help on your behalf. They contact your creditors and advise them that you have filed a consumer proposal to consolidate all of your debt and avoid filing for bankruptcy. Your trustee then deals with any creditors from the point the consumer proposal is filed, so you no longer have to interact with them on a personal basis.
How is the consumer proposal payment amount determined?
The payment amount is determined based on the total amount of debt owing compared and with your ability to remit a reasonable and manageable amount to your trustee. For example a monthly payment of $440 per month can be broken down into weekly or bi-weekly payments. The proposal fund does not accumulate interest and all of your payments are used to fund the consumer proposal as accepted by the unsecured creditors.
Don’t be afraid to ask for help with debt.
A consumer proposal is a manageable course of action for most people. There are many key benefits to filing a consumer proposal to relieve your debt problems. First, and probably most importantly, you are taking the step toward regaining control of your life. You are back in the driver’s seat again.
Making a consumer proposal puts you back in control of your financial situation, giving you the opportunity to make a fresh start. With the weight of unmanageable debt gone, you can work toward your financial and life goals. All of the debts included in your proposal will be consolidated and you make only one monthly payment to your Trustee. You can also make an arrangement to make bigger lump-sum payments if your situation allows. Your Trustee will discuss all of your options with you.
Too many people put off dealing with their debts out of fear they will have to file for bankruptcy. There are very specific reasons why a bankruptcy filing may be appropriate and only a trustee in bankruptcy is able to help.
For 2015, tackle your debt head on and move forward for a successful financial future.