2025-02-27
Who needs a debt plan, and who doesn’t?
Debt Solutions
A debt plan can help you pay off your debts without going into more debt. Learn who needs a debt plan and how to develop a plan to achieve a debt-free future.
2021-06-21
Every day we receive dozens of questions on our website, on social media, and during Free Confidential Consultations wondering how to overcome or alleviate debt without filing a Bankruptcy or Consumer Proposal.
If you cannot keep up with your minimum debt payments and monthly expenses, we encourage you to schedule a Free Confidential Consultation with a Licensed Insolvency Trustee to discuss your options.
However, if you’re merely concerned about your worsening debt situation and want to take proactive steps to get it back under control, following are several effective steps you can start taking right away.
Imagine you’re trying to win a hockey game: You could have the five best players in the league on your top line, but it’s little help if they lack cohesion and direction. A more coordinated and strategic opponent will win a seven-game series four games to zero. What you really need is discipline and a strong game plan to turn all that talent into a winning machine.
Make a list of all the resources you have at your disposal to start chipping away at your debt. This will likely include:
Make a list of all the financial challenges you’re experiencing and what’s preventing you from reducing your debt. This will likely include:
Now that you know what you have to work with and what you’re up against, begin positioning yourself to break through your opponent’s defenses while shoring up your own. Some helpful steps will likely include:
Create a monthly budget that factors for all the expenses you expect to pay.
Reduce your discretionary spending as much as possible (cut back on dining out, cable / subscriptions, shopping, etc.)
Choose a debt reduction strategy:
Track your income and spending throughout the month to ensure what you’re doing lines up with what you’ve planned.
Track your progress every three to four months to evaluate whether you’re winning the battle against your debt, or whether it’s time for a new strategy.
People often make several common mistakes in trying to reduce their debt. While these can seem to help in the short term, they’re not sustainable and can quickly result in more — and often worse —financial difficulties than before.
You have many options to address problem debt besides doing it yourself or filing a Bankruptcy or Consumer Proposal. If you’re struggling to put your game plan into action, consider reaching out to a Licensed Insolvency Trustee to discuss other strategies. They can review your entire financial situation, identify potential challenges you may not have noticed, and connect you with resources you may never have thought to look for.
A Licensed Insolvency Trustee can also discuss the Bankruptcy and Consumer Proposal processes with you and explain when and why either one might be the most cost and time effective strategy to get the financial fresh start you deserve.
2025-02-27
Debt Solutions
A debt plan can help you pay off your debts without going into more debt. Learn who needs a debt plan and how to develop a plan to achieve a debt-free future.
2024-11-13
Debt Solutions
These days, financial literacy is a crucial life skill.
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Debt Solutions
Many Canadians considering this debt relief option wonder if it may jeopardize their employment.