TORONTO, ONTARIO — (Marketwire) — 01/04/12 — It-s the New Year and the post-holiday credit card bills are starting to come in. If you are feeling financially stressed as a result of overindulgent giving, here are some tips for using as part of a smart plan for a fresh start this new year.
Make a declutter list – List the creditors to which you owe money, how much and at what interest rate. The process begins by prioritizing each obligation according to the highest rate.
Clean up credit card debt – If you have several cards, the next step in debt consolidation is to combine the balances onto the card with the lowest rate. Or you could possibly pay off your cards with a loan and have only one monthly payment at a lower rate. The key to successful debt consolidation is not adding more debt on the credit cards you have consolidated. Going forward, pay for purchases with cash when possible so it-s easier to track spending and consider getting rid of extra cards so that you have only one card that you keep at a zero balance.
Organize other debts – As part of your debt management plan, look at the other debts on your list and consider ways to reduce them. For example, can you refinance your mortgage? Pay down a student, car or home improvement loan? If you don-t have sufficient funds right now to implement your debt management plan, start tracking your spending to see where you can find some cash.
If you simply cannot meet your debt obligations, a might be a solution. A can help you with debt consolidation by negotiating a repayment plan with your creditors. Payments are made through a trustee or proposal administrator who will redistribute a portion of your monthly payments to each of the creditors.
There are several key benefits to choosing a consumer proposal to pay off your debt:
As a last resort, is an option to help you get a fresh start if debt consolidation or a consumer proposal are not options. To learn more about filing for bankruptcy, contact your local trustee in bankruptcy, such as BDO for more information.
If holiday spending has left you in a financial bind, there-s no need to panic. Simply begin a debt management plan with as your first move. You may find that debt consolidation is your easiest and most effective answer to holiday overspending. However, if you think you need more help in the form of a consumer proposal or even bankruptcy filing, don-t hesitate to contact your local BDO for help.
Contacts:
BDO