Debt Management

Q.1. I am having money trouble…what am I doing wrong?

Normally this is caused by spending more money than you are making. If you use a deferred payment plan too often – even a credit card – that allows you to purchase now and pay later you may find that you have begun a process that leads to facing bills in the future that exceed your income and you then enter a debt situation which is difficult to overcome. Interest charges on the purchase also add to the costs and make things even more difficult to address. Look for signs of money trouble to help you avoid this type of situation.

Q.2. What can I do to help me correct my debt problem?

Keep track of your money by recording what money comes in and what money goes out. Make a budget and stick to it. Avoid unnecessarily “mortgaging the future” by using deferred payment plans. If you have to borrow money, know what the costs will be. Pay off high-cost debts first. Sometimes consolidating debts into one loan can reduce the costs.

Q.3. Where can I get help to manage my financial problems?

You can go to Credit Counselling Canada to get assistance. This site offers assistance and on-line calculators to help you understand your financial situation. It also directs you to counsellors nearest to you.

Q.4. Can I renegotiate a loan?

If you find yourself in financial difficulty you can contact your creditors. In many cases they will rework a repayment plan that more closely reflects your situation. The Financial Consumer Agency of Canada offers assistance on how to beat your debts.