Debt problems can have a massive impact on one’s life. Many times when people refuse to accept that they have debt problems the strain put on their relationships can become the catalyst that causes the crack in their professional and personal relationships. The longer they try to ignore the problems the more severe and out of control the problems become.
But before you call it quits, you need to realize first that you have a debt problem. Secondly, take the time to review your credit history and credit rating – these reports from Canadian credit bureaus offer great insight to how deep your problems are.
Now, if your debt has already gone out of control and your credit rating is suffering, there are 4 main options available to Canadians that can help solve your credit problems.
- Consolidated Loans – borrowing money to pay all your debts and combine the debts into one low interest loan
- Bankruptcy – a legal proceeding in which you tell creditors that you are broke and they will wipe just about all your debt away.
- Consumer Proposal – an alternative to bankruptcy. Allows you to work with your creditors to reduce your money owing and pay back some of your debt
- Debt Management Plan or Credit Counselling – a non-legal way of working with your creditors to come up with a plan that helps you pay what you owe fully without the interest!