Whether it is because of student loans, a mortgage, or overspending on your credit card, finding yourself in debt that is more than you can manage is overwhelming, discouraging, and in many cases can also have negative effects on your health and wellbeing in several ways, such as:
- Causing anxiety, depression, and mental health issues.
- Putting a strain on family and work relationships and impacts social interactions.
- Increasing stress, which can lead to stress related health problems, such as high blood pressure, insomnia, inflammation, illness, and much more.
- Leading to unhealthy behaviours, such as not eating or eating too much, lack of sleep, poor work performance, and job loss.
But, it doesn’t have to end badly. When you spend some time understanding debt and money problem solutions, and learn about bankruptcy and consumer proposals, you may be able to end your debt with a much more positive outcome. Start by taking these steps toward education and action surrounding your money problems:
Evaluate Where You Are
The first step in finding a solution to your money obstacle is to understand the depth of the problem. Take some time to get all of your paperwork together to see what outstanding debts you have and where you are in the payment of each. Before you begin to tackle how to pay them back, figure out how you can lessen making them worse. Trim down spending on unnecessary items such as weekly take out, daily coffee on the way to work, and excessive packages for your mobile phone TV and internet. Determine other areas where you have high costs, such as utilities, groceries, or insurance and see how you can cut down these costs. While each item may yield only a small reduction, it adds up and every little bit helps.
Learn About Bankruptcy
While you shouldn’t jump into it as being the ultimate solution, learning about bankruptcy and understanding what it means to file and how you do so, is worth your time. For some people bankruptcy is a viable – and indeed the best – solution, while for others opting for repayment plans and speaking to a counsellor is more suitable. Filing for bankruptcy may wipe the slate clean of many of your debts and money problems, but it doesn’t eliminate all of your debts, and it still comes at its own cost: you have long-term damage to your credit score, you have reduced ability to build viable relationships with creditors and lending institutions, and more than that, you are still charged for things such as filing fees and attorney fees.
Enquire About Consumer Proposals
In addition to learning about bankruptcy, it is also advisable to learn about consumer proposals. A good alternative to filing for bankruptcy, consumer proposals are legally binding settlements that are held between you and your creditors. You can think of them as pre-established repayment plans, which specify the amount you pay and how often you pay it, spit up over a period of three to five years. Throughout the proposal period, you are paying back a portion of your debts, often with little to no interest, and, subject to approval by your creditors, once the proposal is over, you are able to start rebuilding your credit history again from scratch, with no negative repercussions.
Consider Consolidating
While a consumer proposal is a good solution to learn about for when you have large amounts of debt to pay down, if you have fewer debts, or they are worth a smaller amount, it may be a good option to consider consolidating. A consolidation loan is when you combine all of your debts and bills into one, and then make a single payment to your consolidation company. Easier to manage and often with a lower rate of interest, many people have great success opting for a consolidation plan.
Despite the stress of money and debts, when you work with a professional debt relief company, you can have a good outcome and much less stress as a result. Reach out to Chande & Company
today and we would be happy to offer you the relief and assistance you need.