I’m always in debt. How do I turn things around?

Do you keep telling yourself that even though you’ve got a lot of debt, if you give things a bit of time they will get better? They won’t! Debt problems are almost never temporary. You need to act fast. The sooner you face the facts, the sooner you can start your journey to becoming debt-free. Here are 3 tips and online tools to help you get a better picture of your financial situation.

1. Start with a financial diagnosis

Do you have a solid understanding of your finances? If the answer is no, this could be a problem. When we don’t have a detailed understanding of our financial situation, we feel like we’re always running, but getting nowhere. Here are 4 different tools to help you get a clearer picture:

• Quick diagnosis tool: See an overview of your financial situation and get an evaluation that will help you make informed decisions about your debt.
• Online budget tool: Get out your bank and credit card statements so you can look over your purchases. This step can take a bit of time, but you’ll find you have a much better understanding of your finances after.
• Debt ratio tool: Calculate your total debt compared to your income. If the ratio is over 40%, you’ll have to act fast.
• The payment time tool: Calculate how long it will take to pay off all your debts (excluding your mortgage loan and your vehicle loan). If it’s more than 5 years, then it’s time to speak with a counsellor in financial recovery to find a solution that works for you.

2. Get into “solution mode,” and out of debt

After doing a diagnosis, you might be in a state of shock. Sometimes, even if we have the best of intentions, we just have too much debt to pay off. Thankfully there are solutions for these situations:

• Consumer proposal
• Debt consolidation
• Voluntary deposit
• Declaring bankruptcy

The important thing is to act fast. The longer you wait, the more interest you pay, and the more stressful the situation becomes. The faster you take action, the better off you’ll be in the long run.

3. Receive a free consultation with a professional

You don’t need to face your debt problems alone. We’re here to support you along the way, and help you find solutions. Our counsellors are here to help. A counsellor in financial recovery and a Licensed Insolvency Trustee will:

• Deal with creditors. Your counsellor will handle all contact with them. No more unwanted phone calls!
• Find a solution that works for you. And that might not mean bankruptcy. Together we’ll look at all the options and choose what’s best for your situation.
• Give you advice throughout the process.

And the best part: The evaluation consultation is free, and completely confidential. Book an appointment, and start breathing easier!