Debt is a financial burden on many Canadians and the average household is likely to have at least some form of debt besides their mortgage. Being in debt can be stressful, frustrating and definitely put a damper on your mental health. Sometimes, being in debt can feel like an uphill battle where the mountain just gets steeper and steeper. It’s normal and wise to seek out professional bankruptcy services and counsellors who can mitigate the risks of your debt and help you on the right path back to repayment and a debt-free lifestyle. 

If you are looking for ways to repay your debt and start seeing that light at the end of the tunnel, read below to find out some of the best ways to create a debt repayment plan. While it may take some work and goal management, it will be a relief to know you are doing something that will help pay off your debt in the future.

Use Savings to Pay Off Debt

When considering how to pay off debt, there are some different methods that may work for you depending on your preference and your specific goals. For example, some people choose to work at paying off the debt with the highest interest rate first. This will save you money on interest fees and is usually the most practical method. 

However, some choose to pay off debt starting with the smallest amount regardless of interest rate. Although you may pay more interest in the long run, this method can help keep you motivated as you see more, smaller debts being paid off faster. 

At the end of the day, it’s up to you to decide what works for your savings goals. What matters is that you continue saving money, budgeting and chipping away at that debt, regardless of how big or how small the repayments.

Debt Consolidation Loan

Another method you could use to help pay off debt faster is a debt consolidation loan. These types of loans can usually be taken out through your bank and are used to pay off all your debt such as credit cards, student loans, car loans etc. 

Once all the debt is paid off, you can work on paying off the entire balance of the debt consolidation loan and you can usually work out a lower interest rate than the one you were paying before on each individual loan. 

This method usually makes your debt more convenient to pay off and means one larger loan instead of many small loans from different institutions that are harder to keep track of. Just keep in mind that you will need a very good credit score to take out a debt consolidation loan, so it’s a good idea to speak with a financial advisor or counsellor on whether this option can work for you.

Decide If You Should File for Bankruptcy

Filing for bankruptcy may sound hopeless, however, the point of filing or declaring for bankruptcy is quite the opposite. Once you file for bankruptcy, creditors will stop pestering you with unwanted contact and legal proceedings and court cases against you will come to a halt. Essentially, you will be given some leniency due to your declaration. This can be an opportunity to gain a fresh start, start paying off debt without getting into more debt and get on track to rebuild your financial status and clear your name. 

Before declaring bankruptcy, however, there are certainly some different avenues to debt repayment that you can explore and try to negotiate with your creditors. If these avenues have been exhausted and debt consolidation isn’t an option, then you may want to consider declaring bankruptcy. This way, you may be able to keep possession of your home, car and personal items. 

Filing for bankruptcy may be something for you to consider if you are experiencing a job loss, high stress due to debt and you can no longer pay for everyday expenses. Don’t beat yourself up in regards to your circumstances. Reach out to a professional counsellor who can guide you through your options if declaring bankruptcy is something you are considering.

Stick To Your Budget

While on the road to debt repayment and a clear name, it’s important to not fall back into old habits or get any further into debt. It’s even more difficult to see the light at the end of the tunnel when your debt seems to be piling on day after day. Our advisors at Charles Advisory Services can help you stick to your budget and work out a reasonable and realistic plan for you to reach your financial goals. We understand the debt repayment and bankruptcy processes and can explain or answer any questions you may have.

Utilize Professional Bankruptcy Services

With our dedicated team of professionals and bankruptcy services, you don’t have to go through the process of debt repayment and building financial security alone. Throughout this process, it’s important to have an advocate that is on your side. 

We would be happy to act as your guide and partner in rebuilding your finances. We can provide you with the support you need and offer tips on how to deal with your creditors or declare bankruptcy if that is the best route for you.

When it comes to dealing with debt, you are not alone. Although it may feel like it at times, there are counsellors and advisors out there who can give you guidance and help work out a realistic plan to put you back on the road to being debt-free and financially secure. Don’t give up or lose hope, declaring bankruptcy and doing what is right for you is never something to be ashamed of. We understand your concerns around debt and bankruptcy and are experienced in dealing with these cases. 

If you would like to find out more about bankruptcy services and debt repayment, please call Charles Advisory Services Inc. at 416-486-9660 or contact us here.