Did you know Canadian household debt reached a record 148 Trillion dollars in late 2010? Did you know more than 100,000 Canadians filed for personal bankruptcy in Canada last year? Did you know historically low interest rates are likely to rise in the coming years? Even if you are still keeping up with your monthly debt repayments, looking for debt solutions for potential financial difficulty in Lethbridge is a good idea.
One of the best measures of financial difficulty in Lethbridge is your debt-to-income ratio. This number will tell you how much of what you make goes towards debt repayment. Divide the total of your monthly debt payments by your gross monthly income. Make sure you include both your secured debt, like your mortgage and automobile loans, and your unsecured debt, like credit cards, installment loans, student loans, and alimony and child support payments.
In the past, financial experts would tell you a debt-to-income ratio of around 36% is relatively safe and even ratios in the mid 40% range are minimally acceptable. If more than 50% of your income is going towards repaying debt, you are in financial difficulty in Lethbridge and should start looking for debt solutions.
The sooner you start looking, the more options you will have. All debt solutions depend on what you owe, what you own, and how much you make.
We see some people in our offices who can get out of their financial difficulties by selling off some of what they own. If you are having trouble meeting your bills, giving up a vacation home in the mountains may be your best debt solution. If you ignore your troubles and end up declaring personal bankruptcy at some point in the future, you will lose that vacation home anyway.
If you owe a lot of money but have sufficient income to pay all or some of it back over time with a little help restructuring your payments, you might be able to present informal proposals to your creditors on your own behalf.
If this is not an option, you can hire professional help. You have three resources from which to choose – credit-counseling agencies, debt settlement companies, or licensed bankruptcy trustees.
Of the three, only bankruptcy trustees are regulated by the federal government. We are not bragging when we point out trustees are the best trained and educated debt consultants available to help you deal with financial difficulty in Lethbridge. An initial consultation is free of charge. Schedule a visit and we can help you determine a debt solution that best meets your needs.
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