We understand your problem.
There are a number of contributing causes of financial stress, some of which are beyond the control of an individual and accordingly are difficult to include in a financial plan. Some of the most common contributing causes of financial stress include:
- Breakdowns in marriage or relationships
- Compulsive behavior and addictions
- Loss of Employment
- Medical issues
- Poor money management
- Business failures – Director’s liabilities – Personal guarantees
- Income tax issues
- Education debt issues
When dealing with financial issues there are different options available which have their own unique pros and cons. The option that may best fit your situation depends on the amount of your debt, your types of debt, your amount of income and monthly expenses, and the importance of your credit rating. Some of the options that may be available include:
• Refinancing debt through a Consolidation Loan or Line of Credit
• Remortgaging home to make use of your equity to consolidate your debts
• Home Equity Loan or Second Mortgage to consolidate your debts
• Loan from Family
• Budgeting to reduce household expenditures to allow for higher debt repayments – making use of a debt repayment plan
• Informal proposals with creditors to agree upon a debt repayment schedule and/or lower interest rate – this is usually done on individual creditor basis, however, it will result in an R7 on your credit rating
• Student Loans (specific debt) – request interest relief which results in all future payments being applied against the loan principle
• Credit Counseling Service – Debt Management Plan – this is undertaken by a Credit Counselor and done on informal basis – however not all debt is included (i.e. Student Loans, Income Tax, Legal Action, etc.) and results in an R7 on your credit rating
• Consumer Proposal – undertaken by a Trustee through Federal Law which includes all unsecured debt, however, this will results in an R7 on your credit rating
• Personal Bankruptcy – undertaken by a Trustee through Federal Law which includes all unsecured debt, however, this will result in an R9 on your credit rating
This summary is not exhaustive and there may be other options available that may be unique to your specific situation. However, we hope the information discussed has given you some insight into various Debt Management Options and how they may affect you. We at Allan Marshall & Associates Inc. are always available free of charge to discuss any matters dealing with your credit and debt.
If you are facing debt and financial problem, please don’t hesitate to call our LIT’s at 1-888-371-8900.