At what level does a debt become problematic?
Being in debt is not a problem in itself these days. After all, most people have credit cards, student loans or bank loans. In fact, few people are lucky enough not to have any debt.
However, when the amounts to be paid each month exceed his income, it becomes necessary to take action. No amount can justify if a debt becomes a real problem, because it requires consideration of the financial situation and a detailed budget that takes into account different factors:
- Family benefits
- Housing allowances
- Employment Insurance benefits
- Support payments
- Regular payments
- Grocery and food
- Repayment of loans and mortgages
- Personal expenses
- Maintenance payments to be paid
- Payment of credit cards
- Saving money
If the two amounts are equivalent, your situation is correct, although this leaves little room for unforeseen circumstances. In fact, ideally, you should have 10 to 20% of your total income left.
You should be careful if:
- You rarely pay your bills on time
- Your line of credit or bank account is overdrawn
- You hide your expenses from your loved ones
- You only pay the minimum amount of your credit card
- Your credit cards have already been declined at a store checkout
- You receive calls from your creditors
- You are constantly stressed about your finances
- How to get out of it?
Fortunately, there are several ways to get out of debt, but first and foremost, you need to properly assess your financial situation. If you don't know how to do it, a representative of a trustee in bankruptcy can help you. He or she will be able to suggest the most appropriate solution for your situation such as debt consolidation, consumer proposal, voluntary filing, personal bankruptcy, etc.
Contact us today for more details and information. We will be pleased to help you recover a healthy financial cycle.