Ways to Get out of Debt

Q.1. What are the signs that I have a debt problem?

Often, we feel overwhelmed by the expenses facing us but there are warning signs that your debt situation is becoming a significant problem. For example, you most likely have debt problems if you frequently pay your bills late, write NSF cheques and borrow from friends and relatives in order to pay bills that have become due.

Q.2. How do I reduce my debts?

You can consolidate your debts to save money. You can also start to control your cash flow by establishing a budget and setting up an automatic savings plan that will help you put money aside. Establishing a debt-repayment plan that is tailored to your situation will begin the process required to get you out of debt.

Q.3. How do I avoid getting into greater debt?

The simplest way is to restrict your spending. Keep your credit card in your wallet or purse and avoid situations that will tempt you to spend. Avoid deferred payment offers – these will only come home to roost later and impact your finances.

Q.4. How do I deal with a collection agency?

Make sure that you identify the debt collector and nature of the claimed debt including the claimed amount, who you owe it to and when the debt started. If the debt is yours look at ways to pay it off.