For C F Canadians di - How H tto Be B a Great Money Manager and Stay Out of Debt
ď śNo matter who you are, life can sometimes interfere with your financial plans. You may experience an accident, loss of income,, or natural disaster. ď śYour car may break down, or a messy divorce could set you back financially.
ď śHowever, there are some simple ways to be a great money manager, manager pay off credit card debt, stay out of debt, and manage g any y situation life could throw at you while avoiding bankruptcy. g bankruptcy p y is important p if you y ď śAvoiding want to maintain a good credit score, which can help you qualify for affordable l loans and d llow iinterest t t credit dit iin th the future.
ď śEven when your credit score improves (as much as ten years after you file bankruptcy), you will often be asked if you have ever filed for bankruptcy y p y when purchasing a house or car, or applying for a lease.
ď śIf you are not able to pay off credit card debt by making monthly payments payments, you may want to seek financial counseling or credit counseling g for bankruptcy p y ((such as from BSCC.ca) so that you can be aware of all potential options before you file for bankruptcy, harming your credit permanently.
ď śA financial counselor may be able to show you how to avoid bankruptcy by consolidating debt more efficiently to make it more feasible to p pay y off credit card debt. You may also be able to reach a debt settlement â€“ where you and your lenders or credit card companies can work together to reach a settlement in which you pay of 40% to 60% percent of your debt, with the remaining debt being forgiven.
ď śIf you are currently in debt and struggling to pay off your bills bills, you can formulate a do it yourself plan to pay off your debts. In this case,, you y y will need to evaluate all your bills, with particular focus on your debts, and contact the various lending companies to determine how much, if any, these companies will work with you on consolidating debt, debt arranging affordable monthly payments, and negotiating interest rates.
After you have done that, you need to reevaluate your budget budget. How much are you bringing in weekly or monthly? How much are y your bills on top p of that,, plus p the credit and debt payments? If you are operating in the red, or spending more monthly than you are netting with your income, it’s time to reevaluate. Where can you consolidate further?
It may be necessary to eliminate many of the “extras” extras that are not completely necessary to your well-being, such as an entertainment budget g for movies and eating out as you continue to work with your creditors to consolidate and eliminate your debt. However, it's not unrewarding and will reap greatt di dividends id d in i your life lif later l t on.
ď śIf your cut-backs contribute to eliminating your debt debt, ultimately you will not live on a sparse, reductionist budget for long, g, because once you y have eliminated the debt, your monthly credit card bills will be gone, allowing you more liquid cash. Once that has happened, you will be able to increase your budget allowance for extras, extras but if you continue sticking to a careful budget, you can avoid falling back into the trap of lots of credit card debt and loans.
ď śEven if you do not already have much credit card debt debt, it is a good idea to evaluate your bills versus your net income so that y you can formulate a budget that can help you avoid going into debt or spending more than you are making consistently. ď ś
ď śIt is also a good idea, if possible, to have a certain amount of money saved and set aside for emergencies. This saved money is not,, of course,, the same as your y retirement or RRSP etc., but rather money that is set aside specifically for unexpected bills such as car repairs or medical.
ď śThat way, if you do suddenly have an unexpected expense come up, up you are able to borrow the money to cover the cost of the emergency g y from yourself, y , rather than having to go into debt.
ď śFor Over a Decade, the professionals at Business Solutions and Credit Counselling Services (BSCC), a registered, government-approved g pp counseling g firm,, have assisted hundreds of thousands of consumers throughout Canada who were once struggling to manage excessive debt and financial obligations.
ď śWe work with each client individually, designing manageable, manageable realistic programs to absolve your financial burden and stress. ď śFor more information that can help you with y your personal p financial situation, please visit their site at www.bscc.ca
Published on Oct 20, 2012
Avoiding bankruptcy is important if you want to maintain a good credit score, which can help you qualify for affordable loans and low intere...