Follow These Tips to Avoid Collecting More Debt

author-img By Arina Smith 5 Mins Read 11 September 2023


If you are experiencing high stress related to your debt and you’re struggling to pay your creditors, then it’s time to contact a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) for expert consultation. Only a bankruptcy trustee can guide you through the best options to resolve your debt issues in a way that’s most practical to you.

Have you ever heard about consumer proposals? They were designed as a method of debt relief for those who have a steady source of income but can’t fully repay their creditors. Unlike filing bankruptcy sometimes goes, filing a consumer proposal allows you to keep your assets as you settle your debts. It could be time to discover what a consumer proposal can do for you to get debt relief and refrain from collecting any more.

A bankruptcy trustee at the Toronto-based firm David Sklar & Associates can explain the consumer proposal process. It is essentially a negotiation with your creditors in which you agree to pay back a portion of your debt in regular payments.

It’s best to address your debt issue early on (rather than ignore it and let it grow) in order to establish the best terms of agreement for a consumer proposal in Ontario.

Be Tax Ready:

One of the important things you can do to avoid collecting debt beyond what you can handle is to keep organized records of your finances. One of the red flags of a serious debt issue is whether or not a person knows exactly how much they owe. When someone starts to keep detailed records of their debts, income, bills, and deductibles, it’s a step in the right direction towards developing a healthy, transparent attitude with one’s own finances.

Having your tax-related documents on hand can save you time and money. You can prepare yourself by getting your paperwork together in advance, setting up a dedicated file folder in your home with distinct folders for categories like charitable donations, deductible expenses, healthcare expenses, pay stubs, employment contracts, and other important documents.

Reduce Your Interest Rates:

Store brand credit cards are notorious for charging high levels of interest. When you start to seek out financial advice, the professionals will often deter you from using this type of card. Credit cards (store brand or not) with high interest can make it even harder to get out of debt as interest accumulates.

To cut down on collecting more debt and set yourself up to stay out of debt in the future, you might be able to negotiate a lower interest rate with your credit card company. Call the company and ask what can be done to lower your credit card interest rate. Before you do so, make sure you are in full knowledge of your credit card terms, the statement due date, your balance, and your credit.

The better your credit score, the more trustworthy and reliable you will seem. Do some research and find competing for credit card offers. Since the company is competing with other brands, your loyalty can earn you some leverage in the negotiation and start to cut down on your debt once and for all.

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Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

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