Being unable to pay for bills is very common – in fact, nearly every Canadian has been faced with this reality at some point in her or his life, borrowing from one credit card to pay for another one. If you find yourself with mounting debt and want to get back on your feet, the good news is that you have a few different options, methods utilized by millions of Canadians, to help you do so.

1. Improve Management of Finances. The first task is to list all of your monthly expenses and create a budget based off of these numbers. It is imperative to stick to your budget. Also consider speaking to a credit card counsellor, who will offer free services on how to budget finances.

   Cut unnecessary expenses as much as possible and use this additional money to pay off your credit card bills. Once your credit cards have been paid off, it is a wise decision to get rid of any unnecessary credit. Alternatively, if you do keep them, work to ensure that all bills are paid on time to improve your credit score so that in the future it will be easier to pay off your credit cards due to lower interest rates offered through good credit.

2. Contact a Credit Counsellor and Set up a Debt Management Plan. Not only can a credit counsellor offer ideas on the management of finances. Sometimes just having outside help organizing the situation and figuring what debt to tackle first can get you on the correct path. A credit counsellor may have idea that you have never thought of or options you didn’t know existed.

3. Set Up a Consumer Proposal to Your Creditors. A consumer proposal can be made to your creditors by a Licensed Insolvency Trustee, which allows you to make payments over a period of time up to five years. The payments will be a set amount based on what you can afford. You will also not pay any additional interest on any debt and will often end up paying a lower sum overall because it is a more attractive option for creditors than having you file for bankruptcy.

   It is an alternative to bankruptcy and allows you to keep your home and other assets. It also doesn’t negatively affect your credit as other options can. It is a good option for those who have a lot of debt but also have a set income every month.

4. Consider a Debt Consolidation Loan. This option is particularly beneficial for those who have many unsecured debts with multiple creditors and high-interest rates. A debt consolidation loan will consolidate all of your debts so that you only have to make one monthly payment. This option is helpful when the loan can be obtained at a lower interest rate and manageable monthly payment.

5. File for Bankruptcy. In some cases, filing for bankruptcy is the only means to regain financial stability. It is sometimes the only option after the loss of a job or after a divorce.

If you are considering filing for bankruptcy as an answer to your debt, one of your first priorities should be contacting a Licensed Insolvency. For bankruptcy, proposal, and counselling options Kevin Thatcher & Associates is an excellent choice, with over ten years in the business. Contact our team of professionals for more.