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Difference between revisions of "Problems with Debt"
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:*a copy of the original loan agreement you signed. | :*a copy of the original loan agreement you signed. | ||
[[File:ConsumerLawGuidePage10A.jpg|250px|thumb|right]] | |||
It is a good idea to keep the latest letter or statement for each debt together in one place so that you can easily find them if you need them. | It is a good idea to keep the latest letter or statement for each debt together in one place so that you can easily find them if you need them. | ||
==What do I put in my budget?== | ==What do I put in my budget?== | ||
The next step is to work out your budget. Your budget lists how much money is coming into your household and how much you need to spend. | The next step is to work out your budget. Your budget lists how much money is coming into your household and how much you need to spend. | ||
'''Income:''' list all the income for your household. Make sure that the amounts are realistic. Include all of your current sources of income: | '''Income:''' list all the income for your household. Make sure that the amounts are realistic. Include all of your current sources of income: | ||
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:*Wages | :*Wages | ||
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:*GST refunds | :*GST refunds | ||
'''Expenses:''' the next thing you need to do is list all your expenses. Make sure that the amounts are realistic. Figure out all of your expenses on a weekly, monthly, or seasonal basis. Make sure you remember to include personal expenses, such as loans, restaurant meals or gym memberships, and household expenses, such as rent, groceries, cable, and utilities. When you make a list of your expenses, think about whether you may be able to make any cutbacks. If you can make cutbacks, this will make more money available for you to pay back your debts. When you have listed all your income and expenses, add up the figures and see if you have any money to spare to pay your creditors. If you have any money to spare, decide which debts are the most urgent ones, and which debts are less urgent. Pay off the most urgent debts right away. Then make a plan for how you are going to pay the less urgent debts. | '''Expenses:''' the next thing you need to do is list all your expenses. Make sure that the amounts are realistic. Figure out all of your expenses on a weekly, monthly, or seasonal basis. Make sure you remember to include personal expenses, such as loans, restaurant meals or gym memberships, and household expenses, such as rent, groceries, cable, and utilities. When you make a list of your expenses, think about whether you may be able to make any cutbacks. If you can make cutbacks, this will make more money available for you to pay back your debts. When you have listed all your income and expenses, add up the figures and see if you have any money to spare to pay your creditors. If you have any money to spare, decide which debts are the most urgent ones, and which debts are less urgent. Pay off the most urgent debts right away. Then make a plan for how you are going to pay the less urgent debts. | ||
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You need to provide enough information so that your creditors understand your financial difficulty. Tell your creditors that you would like to pay your debt but cannot do so in full right now. You could offer to pay them an amount you can afford if you have the money to do so. If you have to stop making payments, let your creditors know about your financial situation and that you will tell them when it changes. | You need to provide enough information so that your creditors understand your financial difficulty. Tell your creditors that you would like to pay your debt but cannot do so in full right now. You could offer to pay them an amount you can afford if you have the money to do so. If you have to stop making payments, let your creditors know about your financial situation and that you will tell them when it changes. | ||
=== Step 2: Attach any relevant documents=== | === Step 2: Attach any relevant documents=== | ||
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* documents that show changes in your family. For example, you may have a new child or you may be taking care of an elderly parent. | * documents that show changes in your family. For example, you may have a new child or you may be taking care of an elderly parent. | ||
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=== Step 3: Attach your budget=== | === Step 3: Attach your budget=== | ||
