Tips for taking charge of your debts

(NC) - Understand the warning signs – Paying bills late, bouncing cheques, making minimum payments on credit cards, using one card to pay another, getting calls from collection agencies, asking friends or family for loans, having your utilities cut off, cutting back on clothing and food;

Rework your budget – Make a budget and stick to it - even if it means changing your lifestyle and reducing your expectations. Keep track of every penny you spend to see where it all goes. By making a budget, you'll pay for essentials first and free up some money to repay your debts;

Seek help – Talk to a budget or credit counsellor; anyone can do so. A counsellor can help you make a plan for managing your money. They can also offer ways to help you get out of debt. Budget and credit counselling services are offered by many types of organizations such as provincial governments, non-profit groups and private companies. Talk to your provincial or territorial consumer affairs office, or a consumer organization in your area for help finding a counsellor near you;

A budget or credit counsellor can also help you decide if the following options are best for you:

Contact your creditors – Make payment arrangements with your creditors to make it easier for you to repay your debts. Make a list of your creditors and contact each one separately. For example, you can ask to reduce your payments. You can also ask to put off your debt for a time, or to pay less interest. You can even propose all three options.

Sell something you own – An asset is something that you own fully with no money owing. It could be your car, your television or computer. Difficult to do but easy to reap the financial rewards.

Last resort – If none of the above options works for you, consider filing for bankruptcy or taking a legal course of action called a “consumer proposal.”

The federal, provincial and territorial governments of the Consumer Measures Committee have posted some great publications on how to take charge of your debt. Go to www.ConsumerInformation.ca and search for Be Informed About…Debt.

Source: www.newscanada.com