Many of us accumulate assets and increase our expenses from year to year, thinking that our anticipated income growth will be enough to cover these increases.
Consult our tools and tips to learn more about your situation.
By preparing a monthly budget and following it, comparing your actual expenses with your budget, you will be more aware of your ability to make certain purchases.
A ratio greater than 40% is considered problematic.
It is likely that you are having difficulty paying for certain living expenses such as groceries, electricity, family and personal expenses. This is a sign that you need to take charge of your financial situation now and get your budget back under control.
Once you have made your budget, you will be able to better control your finances. We know it's not easy to do this budget exercise, but you'll be amazed at the results.
Negotiating new agreements with your creditors in order to adapt your payments to your budget, i.e. your ability to pay, is often a more acceptable solution for your creditors than bankruptcy.
You can then stop the pressure from collection agencies, eliminate the anxiety that a ringing phone can cause you and put in place a repayment plan that works for you and your creditors.
This approach can be more difficult if you have several creditors, or if some of them refuse to discuss it. A consumer proposal or even bankruptcy may be your only options.