Dealing with credit card debt is tough. Interest rates are high, often 19.99% or more, and minimum payments get you nowhere. If making the minimum payment, it can take as long as 50 years to repay your outstanding balance!
You start out with a low limit, but the credit card company gradually offers to increase it over time. Emergency after emergency occur, and you rely on your credit cards. Your car breaks down, you unexpectedly need to move, or you find yourself out of work. The balances can add up quickly, and if you have multiple cards it can be very challenging to manage all of your payments.
If you’re only making the minimum credit card payment, it’s quite likely that you would benefit from a free consultation with one of our Licensed Insolvency Trustees.
Even if you are paying much more than your minimum payment each month it’s important to compare your new charges to the payment you make. If you’re charging $1,000 in new purchases to your card, and paying $1,000 (which is more than your minimum payment), you’re still not getting anywhere.
Credit Card debt, like any debt, can cloud your monthly budget and make you believe that you’re getting by when you’re treading water at best.
Focus on your credit card balances. Are they rising or falling at the end of each month? If they’re not consistently falling, then you may qualify for debt relief services offered by a Licensed Insolvency Trustee like Steve Welker and Co. During your free consultation a Licensed Insolvency Trustee will take the time to review your circumstances and budget and explain your options to you.
If your situation isn’t too bad, you might consider a low interest consolidation loan from a chartered bank. A consolidation loan consolidates all of your debts into a single payment. The interest rate should never exceed 10%. We do not suggest considering higher interest rate consolidation loans, as they often only make the situation worse. If your credit is poor, it can be challenging or impossible to qualify for a low interest consolidation loan. Also, you may not be able to afford the consolidation loan payment even if the interest rate is lower than your current credit card interest rates.
If that’s the case, then a Consumer Proposal may be a better fit.
Some of us face personal financial crisis during our lives. We may be able to solve some money problems ourselves, but sometimes we need professional help. The situation may have gradually worsened over time, or happened suddenly because of a job loss, serious illness, divorce, or other major life event.
Whatever the cause, if you’re struggling with debt, you have options. Recognize the danger signals.
You may have a debt problem if:
Meet with a Licensed Insolvency Trustee to go over all of your options
If you are facing serious financial difficulties, you will want to meet with a Licensed Insolvency Trustee. When you meet with a Licensed Insolvency Trustee, try to assemble as much information about your financial situation as possible including: credit card statements, bank statements, pay stubs, mortgage records, loan documents, etc. A Licensed Insolvency Trustee will explain your options and the advantages and disadvantages of each option. The consultation is free, and it does not cost anything to start working with a Licensed Insolvency Trustee. If you are asked by for money up front it is a red flag; call us instead.
A Licensed Insolvency Trustee is an officer of the court who balances the interests of you and your creditors. In addition to helping you assess your situation, a Licensed Insolvency Trustee will inform and advise you about both the proposal and bankruptcy processes and play an impartial role in ensuring your rights, as well as those of the creditors, are respected.
A Licensed Insolvency Trustee is the only professional authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as a consumer proposal or a bankruptcy.
When you work with a Licensed Insolvency Trustee, you can rest assured that you are dealing with someone who has demonstrated that they have the knowledge, experience and skills to be granted a license from the Office of the Superintendent of Bankruptcy, and is overseen by federal regulators.
A Licensed Insolvency Trustee:
We don’t sell our services. We simply assist you to understand your options and support you in deciding what path is best for you.