Every year the 3rd week of January brings with it holiday bills. For many Canadian's this can be overwhelming.
The reality is, debt levels have continued to climb and bankruptcies are on the rise. In fact, they are higher by 8.9 per cent year-over-year as of the end of November, according to the Office of the Superintendent of Bankruptcy. The number of Canadians living paycheque-to-paycheque has been on the rise and all it takes is for a family member to lose their job for the fear of financial ruin to become a reality very quickly.
Here are a few signs you might need financial assistance:
1. Your Credit Card or Cards are Maxed Out
Maxed Out means that you are over 70% of your credit card limit, and you cannot afford more than the minimum payment. ex. Owing $3500 or more on a credit card with a $5000 limit.
2. Creditors Are Calling and are Demanding Payments
If you avoid answering your phone, and are avoiding opening your mail there is definitely a problem on the rise.
3. You Use Your Credit Cards for Living Expenses
This is often a sign that there is not enough money coming into the household. This is a sign of a bigger issue.
Notice Any Signs?
The most important step is in coming to terms with the fact that you may need help in resolving the issue. There is always light at the end of the tunnel. Many people have gotten out of debt, and fixed their financial situations in a matter of months.
How Do I Fix My Finances?
There are many options ranging including debt restructuring, debt consolidation and consumer proposal. Bankruptcy is also an option but we at MoneyHaus suggest this as a last resort.
There are many options to choose from to clean up your credit score. Especially if the reason your debts and credit were affected was through job loss, or unforeseen circumstances.
Quick Action Steps
Budget and Don't Overspend
Pay Your Largest Payment Debt First (so you can maintain cashflow)
And whenever possible Speak to a Specialist at MoneyHaus about hitting the reset button