Are You Drowning In Debt Five Tips To Help You Stay Afloat

2016-08-22

Debt Solutions

Debt is a subject no one likes to talk about. Many people have debt but don’t know what to do to get out of it. Debt affects every aspect of our lives and when left unmanaged, can cause a great deal of stress. Given today’s struggling economy and an ever increasing cost of living, it’s no surprise to learn many Canadians are struggling to keep up with day-to-day expenses, let alone manage piling debts. Here are five insightful tips for anyone trying to stay afloat:​ Budget: Prepare a budget and track your monthly spending. Debt repayments need to be included in your monthly budget. If you don’t have enough money to live and pay your debts, your financial problems may be worse than you thought. Modify your lifestyle: Small purchases such as daily lunches and coffees can really add up. Try reducing unnecessary spending. Differentiate between the needs and wants in life. For example, you need to eat lunch every day, but eating lunch from a restaurant every day is a want. Modifying your lifestyle can be tough and it may even include selling belongings you don’t really need to have, such as a motorcycle, trailer, boat or a second car. Negotiate with your creditors: Some creditors may be willing to provide you with more reasonable payment terms or interest only periods. This can help you fit your debt repayments into your budget if they don’t already. Debt consolidation: Most banks are willing to loan you money to help pay debts at higher interest rates, especially if you have equity in your home. Buyer beware: They may require that a family member guarantee the loan. Don’t pass your financial problems onto a loved one! Seek help: Licensed Insolvency Trustees and credit counsellors can help you establish a budget if you don’t already have one. A Licensed Insolvency Trustee can also help you get you debt relief solutions that suit your unique financial circumstances through services like filing for a Consumer Proposal or a bankruptcy if you are insolvent. Contact your local MNP advisor today for help with these tips or if your debt is too great. We offer free, no-obligations consultations. One of our Licensed Insolvency Trustees will be able to explain all of the options available to you, so you can choose which route is most manageable for your unique situation, allowing you to get back to living and working towards a debt-free life! Philippe Larocque is a Licenced Insolvency Trustees within our Ottawa location. To learn more about how MNP Debt can help you, contact any of our local offices at: Ottawa 495 Richmond Road, Suite 110, Ottawa, ON, K2A 4B2 T: 613.691.4270 F: 613.726.9009 Ottawa - East 1730 St-Laurent Blvd, Suite 800, Suite 800, Ottawa, ON, K1G 3Y7 T: 613.691.4270 Ottawa - West 555 Legget Drive, Tower A, Suite 304, Kanata, ON, K2K 2X3 T: 613.691.4270 ​​​​