Licensed Insolvency Trustee Suggests Ditching Credit Cards

The Bankruptcy and Insolvency Act (BIA - Federal Government Legislation) allows an undischarged bankrupt to be able to file a proposal as a way of dealing with his or her debts. This option is used by individuals who filed an assignment in bankruptcy and then found that their situation had changed for the positive. This allows them to make a proposal (make monthly payments) to their creditors, which when accepted by the creditors, cancels out the bankruptcy (as if it never happened).

Credit is a useful tool when used correctly, but relying on credit too much can put you in a bad situation financially. Keep reading for some of the early warning signs of developing credit problems that every consumer in Edmonton should watch out for.

Debt is an unavoidable fact of life. Job loss and our slumping economy adds to the equation, making the average debt load for Edmonton consumers some of the highest in the country. If you have a considerable amount of credit debt and your income is steady or now reduced, you’ve probably looked into ways of reducing your monthly payments. Returning financed assets, selling other assets, cutting back to essential expenditures can only do so much.

Most of us use plastic to make purchases. We’ve lost touch with the value of money. Back in the day, a person would go to the bank and put $40 in your pocket then 2 days later it was all gone. Some purchases along the way weren’t made because you didn’t have enough money left to be able to make the purchase.

People get together and form couples. They end up sharing a lot and keeping some things separate. Statistics say that between 35% and 42% of marriages are projected to end in divorce before the thirtieth wedding anniversary. Breakup rates for common-law and conjugal relationships are similar or slightly higher.

James R. Moses has compiled his tips to help you reduce your debt in Edmonton before it overwhelms your finances.