For many people this is their natural first response, and is perhaps the least effective and most devastating. By doing nothing, you let your debts and the creditors to whom you owe money take control – not only of your finances, but probably your life too. This is the day that someone described as the day a friend told him to “Cheer up, things could get worse.” So he cheered up, and sure enough, things got worse! By doing nothing, you are inviting your creditors to take you to the worst case of option # 10 – an involuntary bankruptcy. The trip may take a little while, but it will not be a pleasant journey.
Great idea! But what if you don’t win? This sounds pretty much like option # 1. How long will you wait before you realize that “the big one” is not likely to come in during your lifetime.
This may not be such a bad idea. In fact one contributing factor to building a happy and successful life is to choose the right partner. Couples who are able to communicate their financial objectives to one another and work together to achieve common goals are very likely to succeed. However, you may not be in a position to select the partner who might be able to ‘bail you out’ of your financial misery. You can always dream, however. Once again that sounds a lot like option #1.
4. Get another jobGet another job
This can be a workable solution. Classified ads are full of opportunities for part-time workers that can provide a valuable source of additional income. Others start home-based part-time businesses – some of which end up being so successful that they are able to “quit their day jobs” and go on to erase all their old financial problems. There may be a serious hidden cost to this, however, when you consider the value of the relationships with family and friends that will clearly suffer from your chronic absence.
5. Get a better jobGet a better job
This is clearly a great option – if you can find one. You might be better off “loving the job you have” and demonstrating your ability to take on a more challenging level of responsibility there (presumably with better pay) rather than looking elsewhere. Dedication to a job and loyalty to your employer is an attitude losing popularity as our society becomes more cynical. However, a history of frequent job changes does significant damage to your credit rating as it suggests that you lack stability.
6. Control your spendingControl your spending
Now we are getting somewhere! Establishing a workable budget and learning to live within it can be the most important, but possibly one of the most difficult skills you will ever master. There are many tools available now to help make this daunting task much easier to handle. Although people who have a good supply of common sense are really quite uncommon, we are all given an adequate amount of it to get us started, and we can accumulate more and more as we go through life. They say that experience is something we all get, just after we have the most need for it. Learn from your current situation. Figure out how you got there, and you will probably find a way to prevent it from happening again.
7. Get a consolidation loanGet a consolidation loan
If your credit rating still has some legs, you may want to consider this as a possible solution, but before you do, take a good honest long hard look at yourself, and ask whether this course of action is really a solution, or might it be an opportunity to get into even deeper do-do. It is rarely a good idea to pay off debt by getting even further in debt. Tomorrow might be a better day, but the tomorrow you get may only bring a bigger debt load with it when the critical deadline arrives unless something really fundamental also changes for the better.
In all probability, you will be exchanging unsecured debt for a loan that is backed by your solid assets – like a second mortgage on your home. In doing this, you will be putting that hard-earned, valuable asset at risk. Is it worth it? If your consolidation loan is not based on assets, you will, in all probability, be paying a higher interest rate and/or will be given a longer payback period (potentially costing you thousands of dollars more).
8. Talk to your creditorsTalk to your creditors
You may be surprised at just how much these people can do for you, if you just stay in touch. Let them know when you run into trouble. You don’t need to be embarrassed. Everyone (almost) has a financial glitch once in while, and most of your creditors really do want to keep you as a good happy customer and will do things that may surprise you just to keep your account in good standing. Of course, they may also get tired of being helpful if your problems become chronic, and you are “talking” to them on an ongoing basis without achieving a permanent resolution.
In some cases, especially if your account has gone to a collection agency, just talking really doesn’t do much good. These people try to earn a commission by getting you to pay money that you really do owe, and are entitled to be persistent and persuasive in doing that. The less reputable among them may go beyond their legal rights and threaten you, call outside of allowable times, call your employer or neighbours, and harass you in any number of creative ways. If this is the case, you need help – we would be happy to take on these bullies and make life a lot easier for you.
9. Enroll in credit counsellingEnroll in credit counselling
This may be your best option. Call for a free, no-obligation evaluation. We can find the best way for you to escape from your personal prison of plastic and promises. You can book a one-hour session with a friendly, trained, government licensed counsellor who will analyse your debt situation and provide you with a recommended course of action.
Your counsellor may simply assist you in setting up a workable budget, recommend ways to restructure your debt, or may determine that we can provide you with more practical help by negotiating settlements with creditors or managing a debt repayment program for you. We are able to get most creditors to agree to drop their interest charges and establish liveable repayment schedules that will typically save you thousands of dollars and let you begin to rebuild your credit. Call 888-591-9443 now or apply online.
Although it may sound like the easy way out, you really don’t want to go there. Not everyone even qualifies for bankruptcy, but if you do you will have to make most of the financial details of your life open to public scrutiny, get involved with the courts and pay a Trustee in Bankruptcy a lot of money to go to work for your creditors to extract from you as much of the value of your remaining assets as the law will permit.
Depending on the provincial regulations that apply to you, you may be able to keep most of your personal items, necessary tools for your trade, an inexpensive car, and perhaps your home, but you can say goodbye to most of the other assets that you have worked so hard to accumulate. It may take up to two years of continuing struggle to obtain a discharge at an intimidating court hearing. A bankruptcy can remain on your credit record for up to ten years, and if you think your first bankruptcy is harsh, don’t even consider doing it a second time.
If you think that there is even a remote chance that you can qualify, go back to number 9 and try the credit counselling route. Call 888-591-9443 now or apply online.