The most effective way to prevent debt is through budget planning. A budget will make it easier for you to keep your spending in check and attain your financial goals.
As well, it is helpful to set money aside throughout the year for fixed expenses that may arise in future months. This way you will have the money available for unexpected bills that are due immediately, such as car and home repairs, clothing, or insurance, without having to resort to debt to pay for it.
The simplest method is to make an expense budget. There are tools available online that will help you to calculate your ability to pay your expenses and debts without having to use a credit card.
There are many signs of a debt problem:
Your bank or credit union is unable to honour cheques written by you. If this happens, you can attempt to negotiate with your creditors in hopes that they will delay cashing your cheques
You have difficulty paying for normal expenses such as hydro, telephone, TV, rent, etc.
You can only pay for everyday expenses by using a credit card
You can only afford to pay the minimum balance on your credit card, or you can only pay off a credit card by using another credit card
These problems can sometimes lead to marriage difficulties. If you feel that any of these apply to you, you should take strategic action now. Our trained professionals will work with you to make the right decisions for your situation.
The simple answer is that there isn't one. People can have debt problems as the result of a difficult personal situation like marital problems, loss of employment, or health issues, regardless of their age or social status.
Maintain a steady job, create a budget and follow it, pay bills with cash or debit as soon as possible, and save money in order to increase your assets. Taking these actions will increase your credit score. Applying and being accepted for new loans from your bank or credit union and making your payments as required will demonstrate that you have recovered and rebuilt yourself financially. Learn more about credit. Learn more about credit.
These responses to some of our frequently asked questions are given as general information only. Everyone’s situation is different. To speak with us now in Winnipeg at 204 594 7160 for a free, confidential, no obligation consultation. We are Licensed Insolveny Trustees in Winnipeg & Manitoba, qualified for bankruptcy, consumer proposals, and other debt solutions.