BAD CREDIT PROBLEMS RUINING YOUR LIFE?
Can't pay your bills? Want to know how to solve your credit problems? You cannot run or hide from your bad credit or debts. Read about credit counselling, a consolidation loan, consumer proposals or even bankruptcy to see what will work for you.
How To Solve Your Credit Problems.
EARLY WARNING SIGNS
OF FINANCIAL DISTRESS
- If you recognize yourself here, you need financial counselling and assistance
- Are you constantly receiving past-due notices on charges or bills?
- Are you borrowing money between pay cheques?
- Are you taking out new loans to pay off old ones?
- Are you behind in rent or mortgage payments?
- Are you frequently relying on automatic overdraft protection on your chequing Account?
- Are you using credit to meet monthly necessities?
- Are you only making minimum monthly payments on credit card accounts?
- Are you fully drawn on your credit facilities and unable to meet monthly payments, or pay down principal?
- Are you being sued by any of your creditors?
- Are your wages being garnisheed?
- Do you and members of your household frequently argue about money?
- Do you frequently worry about money and money problems?
How to Negotiate with your creditors
The first step in trying to resolve your debt problem is to pick up the phone and contact your creditors and try to work out a payment plan. Explain your situation and reiterate your willingness to work with the creditor to catch up on your overdue bills. More . . .
WHAT TO DO IF YOU
CAN'T PAY YOUR BILLS
You have five basic options available:
What Are Consolidation Loans?
Use only if you are able to control your spending. If you can get a consolidation loan, this may solve your problem. However many people who consolidate just run up their credit cards again and are worse off than before the loan. More . . .
What Are Credit Counselling Services?
Credit Counselling services can work out a lower payment plan with your creditors for you. They charge fees despite their touted "non profit" status. The fees are usually hidden and deducted from your payments. Credit counselling plans will take years to pay off your debts. More . . .
Know you are not alone.
Some 125,000 Canadians declare bankruptcy and get a fresh start and a clean slate every year. Where do you start? Right here. Right now.
Keep in mind that your credit rating is probably already ruined so any of the steps above will not hurt it. In fact, in time, these steps will improve your credit rating.
CanLaw helps with solid information on
credit, debt consolidation, credit counselling, consumer proposals or bankruptcy
You Cannot Out Run Your Debts
What Is a Consumer Proposal?
A Consumer Proposal is a means to negotiate with your creditors for the reduction of you debts and/or extension of time for payment of their debts. The payment schedule that is created in consultation with a your advisor is based on your income, living expenses and family creditors. It prevents your creditors from taking legal actions to seize assets or garnishee wages. More . . .
How Does Personal Bankruptcy Help?
The best way to get detailed information about filing an assignment in bankruptcy or a proposal is to contact a Trustee in Bankruptcy. There is no cost for this and there is no obligation to proceed with bankruptcy. More . . .
HERE ARE THE BASICS YOU NEED TO KNOW IF you have money problems? Bad credit? Can't pay your bills? How to solve your credit problems. Learn about credit scores, ratings, credit counselling, negotiating to lower your debts. Should you consider consumer proposals or even bankruptcy?
On line Since 1996
CanLaw Guide to the Law on Debt for the Layperson