You first need to understand debt in order to beat debt. So what is it? Well, if you use it to invest, then it can help! Say you borrow $100,000 to invest in something that makes you $200,000 then that was simply and investment. But if you rack up $100,000 in credit card debt buying food, drinks and toys then you can’t earn from that, and hopefully you can say you got $100,000 worth of pure enjoyment from it all, because you can’t leverage any of it to earn more money. You could sell your stuff but usually at a loss if you had to do it.
A great step in getting out of debt is a formal debt management plan from a credit counselor. They can sit down with you and your partner, make a list of what you owe (which includes informal debt such as family money), and assist in coming up with the best plan for paying it all off based on your income and expenses. They really focus in and review your monthly cash flows to see the amount to go towards debts and the best options on what you should start to pay first.
One more intense option for getting out of debt is a consumer proposal. Most people either do not know what that even is or have simply never heard of it before. While many know that bankruptcies are to discharge your debts and hand over your assets, a consumer proposal is a contract with your creditors to pay off your debts for a fixed monthly fee but only a certain percentage of your total debts. This is a legally binding contract where at least half of companies you owe must agree on (where they each have one vote per dollar). You will need a licensed professional to both pitch and document the papers. This is the kind of next level stuff you need if you want to stop those pesky CRA collections calls – they’re relentless!
It doesn’t matter what option you decide to go with it’s important to meet up with someone to chat about it. You should probably determine your possibilities with a Licensed Insolvency Trustee that can provide you with sound input. There’s a chance it could also be a straightforward plan or something more formal that you’ll need to help with finally getting rid of debt once and for all. Now, you might think doing it by yourself or based on a plan is a better decision, but depending on your current situation it may be best and a quicker route to shedding the debt if you have a professional working with you creditors on your behalf. Don’t ever fall short to protect you yourself and your friends in your life as best as possible.
If you’re in need of extra cash you can use a reverse mortgage when you’re older to get more funds out. This can ease your cash flow problem especially if you have a lot of equity in your home.
Stop wasting your time trying to Find Things Nearby and save your money for something much better.