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Difference between revisions of "Problems with Debt"
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To deal with a debt problem, you first need to work out how much money you owe. To do this, make a list of all the people and companies you owe money to (your '''creditors'''). You need to collect the following information for each debt: | To deal with a debt problem, you first need to work out how much money you owe. To do this, make a list of all the people and companies you owe money to (your '''creditors'''). You need to collect the following information for each debt: | ||
[[File:ConsumerLawGuidePage10A.jpg|250px|thumb|right]] | |||
:*the name and address of the creditor, | :*the name and address of the creditor, | ||
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:*a copy of the original loan agreement you signed. | :*a copy of the original loan agreement you signed. | ||
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. | ||
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:*GST refunds | :*GST refunds | ||
[[File:ConsumerLawGuidePage11A.jpg|200px|thumb| | [[File:ConsumerLawGuidePage11A.jpg|200px|thumb|right]] | ||
'''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. | ||
